New Zealand Law
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The law of partnership says that there is a duty of good faith between partners. This would extend to informing your partner if there was a bankruptcy proceeding underway. If he is bankrupted, he would not be permitted to remain in business in any event, because the Insolvency Act prohibits people being in business unless the Official Assignee in bankruptcy specifically permits this. So you could end the business relationship on two grounds, first that he should have told you about the bankruptcy, and second because if he is made bankrupt that exposes you.