A conflicting interest in the business sector is a business activity that exists as competition to the business or organization in which you are a partner or an employee. Any activity that competes for the same customers and contracts as your partnership or your employer.
Conflict of interest can lead to one being sued for compensation in terms of harm caused. This can be done through termination of partnership or dismissal from the employment and sometimes both compensation and termination/dismissal can be dole out to the perpetrator.
Because of this, partners, employers, and any relevant business relationship is usually advised to state in clear terms the activities that comprise conflict of interest right at the time of drafting a contract.