Discuss five circumstances under which a partnership may be dissolved

      

Discuss five circumstances under which a partnership may be dissolved

  

Answers


Davis
(i) Temporary partnership/(/expiry of time / accomplishment of purpose /where the partnership was
formed for a definite time /for a particular purpose)hence the expiry of time / accomplishment of
purpose terminates the partnership
(ii) mutual /voluntary agreement among partners / where the partners agree among themselves(to
terminate the partnership) then they may have no alternative for whatever reason.
(iii) bankruptcy/ insanity of a partner where (a court declares) the value of one of the partner’s property
insufficient to settle his or her depts. /due to loss of contractual capacity.
(iv) change in law/ governmentt policy that makes the operation of the partnership illegal.
(v) permanent inabili9ty of a partner to perform /fulfill part of the partnership agreement either as a result
of diseases /ill health /incapacitation
(vi) internal dissension /disagreement among partners disagree irreconcilably then the partnership may be
terminated /continuously /perpetually
(vii) persistent losses in operation /where the business has continued to operate at a loss then it is
terminated hence making it difficult to meet its financial obligations
(viii) court orders (where the partnership was formed under) due to fraud /mistake /misrepresentation
/breach of law /partnership agreement court of law may order it dissolution.
(ix) request by one /some partners to dissolve the partnership hence having to abide by their wish /granting
their wish
(x) withdrawal /admission of a partner which changes the status of the partnership
(xi) death of a partner which alters the composition of a partnership /which may necessitate a new
agreement /arrangement
Githiari answered the question on September 23, 2017 at 10:13


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