(a) That's right. Partners owe each other various duties, such as a duty to give full information and accounts of all matters affecting the partnership. There is a duty to account to the firm for any benefit received in the course of transacting partnership business or involving use of the firm's name, property or business connections. In short, a partner cannot hide profits or benefit from undisclosed profits.

Because partners are expected to deal with each other in good faith, a partner is not allowed to compete against the firm, for example, by carrying on a competing business, or entering into competing transactions.

If a partner carries on any such business, all the profits made must be paid over the firm (an 'account of profits'). A partner is not entitled to use the credit of the firm for their personal purposes. An attempt to do so does not bind the firm, though the individual partner may be liable.