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This problem is based on the principle of utmost good faith in partnerships.
(i) Each partner is entitled to utmost fairness from the partners.
(ii) The principle of utmost good faith manifests itself in partnerships in various ways for
example a partner may not engage in a competing business without the consent of other
partners.
(iii) In this case Becky opened a new shop without Beth?s consent which is contrary
to the principle of utmost good faith.
(iv) Since Becky has refused to observe utmost fairness, Beth is entitled to sue for an account of
all the profits obtained by Becky from the other business.
(v) Thereafter, Beth can apply to the court for the partnership to be wound up on the ground
that it is just and equitable.
maurice.mutuku answered the question on April 25, 2018 at 07:22
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