The deed says partners will not share confidential firm information outside. Which principle is this linked with?

Correct answer: Confidentiality and loyalty

Direct answer: Option A, confidentiality and loyalty. Partnership is based on mutual trust, good faith and the duty to protect the firm’s interests. Confidential business information may include customer lists, prices, methods, plans, financial data or trade secrets. Step by step: a partner receives information because of the partnership position; that information belongs to the business context, not to the partner for unrestricted personal use; the partner must act honestly and avoid harming the firm; therefore the deed may prohibit disclosure to outsiders. Option A is correct because keeping business information private and remaining faithful to the firm are duties of confidentiality and loyalty. Option B, equal drawings, concerns whether partners withdraw equal amounts; it has nothing to do with information. Option C, capital equality, concerns the amount or proportion of capital contributed; it does not regulate secrecy. Option D, bank discount, is a banking or bill-related financial matter and has no connection with a partner’s duty not to disclose information. The clause protects the firm even though it may be written specifically in the deed. A weak student should distinguish a behavioural duty from an accounting entry: this is a conduct principle, not a capital or profit calculation. Memory cue: secrets protected means confidentiality; firm’s interest protected means loyalty.