Distinction between Dissolution of Partnership and Dissolution of

Partnership Firm
On the occasion of admission, retirement and death existing partnership
comes to an end, but the business of the firm continues under a new
agreement.
When a firm decides to wind up its business operations under any of the
circumstances mentioned, it stands dissolved. Dissolution of a partnership
firm is different from the dissolution of a partnership.
Dissolution of a firm means that the firm closes its business and comes to an
end. While dissolution of a partnership means termination of old partnership
agreement and a reconstitution of firm due to admission, retirement and
death of a partner.
In dissolution of a partnership the remaining partners may agree to carry on
the business under a new agreement.
Cases
Mtuda v Ndudzo 2000 (1) ZLR 710(H).

Problems:X and Y are partners for seven years, x taking no active part in the business.
After the expiry of seven years, y continues the business in the same name
and with the property of the firm, without giving any account to X. Is x
entitled to a share in the profits of the business?
Ans:
In the above circumstances, the partnership is not dissolved and X is entitled
to participate in the profits on the same terms as those of
the
original agreement. (Parson v Hayward - (1862) 4 D.F.J.
474).