Partnership Agreement Article Re: Furtherance of Partner's Own Interests

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					A partnership agreement sets forth the terms and conditions that govern the relationship
between business partners and their obligations to the partnership. Without a written
partnership agreement, state law may determine the default rules as to the rights of
partners and how partnership assets and liabilities will be distributed. Depending on the
goals and purposes of the partnership, various provisions can be included in the
agreement detailing the rules that will govern the relationship between the partners and
what shall occur if specific contingencies arise. This partnership agreement article on
Partners’ Duty of Good Faith and Fair Dealing may be inserted into a partnership
agreement and can be modified depending on the partners’ specific needs.
                                  PARTNERSHIP AGREEMENT ARTICLE

                       RE: FURTHERANCE OF PARTNER’S OWN INTERESTS

        Any Partner may be engaged in one or more business, other than the business of the
partnership, but only to the extent that the activity(s) do not compete or materially interfere with
the business of the Partnership and does not conflict with the obligations of that Partner under
this Agreement. Neither the Partnership nor any other Partner shall have the right to any income
or profit derived by a Partner from any business activity permitted under this section.

         A breach of this provision may constitute grounds for removal of the Partner for just
cause.




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Description: A partnership agreement sets forth the terms and conditions that govern the relationship between business partners and their obligations to the partnership. Without a written partnership agreement, state law may determine the default rules as to the rights of partners and how partnership assets and liabilities will be distributed. Depending on the goals and purposes of the partnership, various provisions can be included in the agreement detailing the rules that will govern the relationship between the partners and what shall occur if specific contingencies arise. This partnership agreement article on Partners’ Duty of Good Faith and Fair Dealing may be inserted into a partnership agreement and can be modified depending on the partners’ specific needs.