1.11 - Bringing a Partnership to an End

Question 1

What are the two ways a partnership may be brought to an end?

Answer 1

• agreement automatically under the Partnership Act
• by a court order

Question 2

Unless Partnership Act/Agreement states otherwise, you can have automatic dissolution on the following grounds (Non-judicial dissolution) :

Answer 2

• ending of a specific period (when partnership is for a limited term)
• achievement of a specified purpose
• by the giving of notice
• death of a partner
• bankruptcy
• illegality

Question 3

Judicial dissolution, first 2 reasons:

Answer 3

• partner’s incapacity either mental or physical
• conduct prejudicial to business (e.g conviction of criminal offence not connected w business but could lose customers)

Question 4

Judicial dissolution, other 3 reasons:

Answer 4

• wilful or persistent breach of partnership agreement, or conduct affecting the relationship
• business can only be carried on at a loss
• on just and equitable grounds (breakdown of relationship between partners)