Circumstances That Can Dissolve a Partnership
Essay by dinhcong123 • May 18, 2016 • Essay • 344 Words (2 Pages) • 1,115 Views
Nguyen Thi Kim Ngoc
IRN: 1132300271
BUS LAW – QIII.2016
Assignment 3
Name at least five (05) circumstances that can dissolve a partnership.
To begin with, partnerships may be dissolved when the term of the partnership has expired and is illegal or there is a death of a partner or the business has gone bankrupt, even there is a court order too, (dissolve a partnership, 2014). Hence, there are five circumstances that can dissolve a partnership. The first one is dissolution by agreement. It means that a partnership firm can be dissolved by an agreement between partners because this concern and relationship are created by agreement. What is more, that kind of agreement can be known as voluntary dissolution between partnerships, so it also can be dissolved by that agreement.
Secondly, that is the dissolution by notice. Due to a partnership is built by other partnership’s will, so it can easily be dissolved by any partner giving a notice to other partners. The most important thing is the notice for dissolution must be affected by writing and it will be dissolved from the date of receiving that writing.
Thirdly, that is compulsory dissolution when one partner is insolvency. It can be explained that when all the partners of a firm are declared insolvent, even some partners have enough ability to solve problems but in the end, that firm is compulsory to be dissolved.
Fourthly, that is compulsory dissolution when both or one partnership has illegal business. If government is decided to enforce prohibition policy with some types of illegal business but the company A still continue to produce and sell their products, it means that firm must to close down their business because it will be an unlawful activity.
Finally, that is about the contingent dissolution when they are appearance some situation such as death of a partner, expiry of the term, resignation by a partner, misconduct by the partner and breach of agreement. To sum up, the dissolve a partnership can be happened when one of the above case.
...
...