Disassociation, winding up, dissolution

Question 1

What is the effect of dissolution of a partnership?

Answer 1

Dissolution does not immediately terminate the partnership, instead the partnership enters a winding up phase.

i.e., dissolution triggers the wind up and termination of the partnership

Question 2

what is dissociation?

Answer 2

dissociation is a change in the relationship of the partners caused by any partner ceasing to be associated in the carrying on of the business—-it DOES NOT necessarily cause a dissolution and winding up of the partnership business

Question 3

how does a partner become dissociated from the partnership?

Answer 3

A a partner become dissociated from the partnership by:
(1) oral or written notice of the partner’s express will to withdraw;

(2) the happening of an agreed event;
(3) a valid expulsion of the partner;
(4) the partner’s bankruptcy;
(5) the partner’s death or incapacity to perform partnership duties;
(6) the decision of a court that the partner is incapable of performing a partner’s duties;

or

(7) termination of a business entity that is a partner

Question 4

What is the one event of dissociation that automatically triggers dissolution?

Answer 4

notice of a partner’s express will to withdraw from a partnership at will automatically triggers dissolution of the partnership