dissolution

Question 1

When is there dissolution?

Answer 1

When there is change in relation of the partners caused by any partners ceasing to be associated in carrying on.

Question 2

Will dissolution put an end to the partnership?

Answer 2

NO, under the law it will not put an end totally of the partnership. It will continue with the winding up.

Question 3

What is winding up?

Answer 3

Settling the partnership business or affairs after dissolution.

Question 4

When is there termination?

Answer 4

point when all partnership affairs are wound up

Question 5

Causes of dissolution?

Answer 5

1. without violation of the agreement between the partners;
   a. termination of definite term or particular undertaking specified in the agreement;
   b. by the express will of any partner, who must act in good faith, when no definite term or particular undertaking is specified;
   c. By express will of all partners who have not assigned their interests or suffered them to be charged for their separate debts, either before or after termination of any specified term or particular undertaking;
   d. expulsion of any partner from the business bona fide in accordance with such a power conferred by the agreement between the partners;
2. Contravention of the agreement b/n the partners, where circumstances do not permit dissolution, by the express will of any partner at any time;
3. By any event which makes it unlawful for the business of partnership to be carried on or for members to carry it on in partnership;
4. When a specific thing, which a partner had promised to contribute to the partnership, perishes before delivery;
5. death of any partner;
6. insolvency of any partner of partnership;
7. Civil interdiction of any partner;
8. decree of court under the following article; (1831)

Question 6

Will partnership be dissolved by loss of a thing?

Answer 6

Yes, in case when the partner who contributed it have reserved the ownership, and has only transferred partnership be carried the use of enjoyment of the same.

However, partnership shall not be dissolved by loss of the thing when it occurs after partnership has acquired ownership thereof.

Question 7

When can a court shall decree dissolution?

Answer 7

1. partner been declared insane in any judicial proceeding or shown to be of unsound mind;
2. partner becomes incapable of performing his part of partnership contract;
3. Partner has been guilty of such conduct as tends to affect prejudicially carrying on of the business;
4. partner willfully or persistently commits breach of partnership agreement, or conduct himself in matters relating to partnership business that is not reasonably practicable to carry on business in partnership with him;
5. business of partnership be carried on at a loss;
6. other circumstances render a dissolution equitable;

Question 8

What does termination of definite term means?

Answer 8

NOTE: Partnership may be constituted for a fixed term or particular undertaking (1785,, 1783)

After expiration of term or particular undertaking partnership be automatically be dissolved without partners continuing the undertaking.