Dissolution of a partnership - Possible causes

  

Date Posted: 10/12/2011 9:16:59 AM

Posted By: Raychelle  Membership Level: Silver  Total Points: 184

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In the absence of any agreement,a partnership is dissolved in the following ways:

i)Expiry of the term.
If the partnership was set for a fixed term,it will be dissolved upon the term's expiry.

ii)Expiry of the business undertaking.
This happens if the partnership is meant for a specific business purpose.

iii)Notice
A Partner can issue a notice to the other partners that he wishes to have the partnership dissolved.

iv)Death or bankruptcy of a partner.

v)Illegality of a partnership.
If an event happens that renders it unlawful for the partnership to carry out business or for the party members to continue.

vii)Court order
The court may order for a dissolution of a partnership in the following circumstances:
a)If a partner is adjudged a lunatic.
b)Where a partner becomes incapable of performing his part of the partnership.
c)Where a partner has been guilty of conduct which in the opinion of the court,regard being had to the nature of the business,is calculated to affect periodically the carrying on of that business.
d)When the business of the partnership can only be carried on at a loss.
e)Where circumstances have arisen which in the opinion of the court it is just inequitable.

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