Dissolution

Grounds:
What are the grounds of dissolution?
The grounds for dissolution can be categorized into:
(1) Not in contravention of their agreement
(2) In contravention of their agreement
(3) By operation of law
(4) Judicial decree

A: What are the causes without contravening the

Articles of Partnership?

S: Termination of definite term or undertaking

Express will of any partner (in a partnership at Will)

Express will of all partners

Expulsion of any partner from the business bona fide in accordance with such power

A: Instances when there’s violation of the agreement

S: Causes in contravention of the partnership agreement

A: Causes by operation of law

S:
1. Death of a partner
2. By any event which makes the partnership
3. Unlawful
4. Civil interdiction of any partner
5. Insolvency of any partner or the partnership
6. Loss of a specific thing

Judicial Decree
S: A partner has been declared insane in any judicial proceeding or is shown to be of unsound
mind
A partner becomes in any other way incapable of performing his part of the partnership contract
A partner has been guilty of such conduct as tends to affect prejudicially the carrying on of the business;
A partner wilfully or persistently commits a breach of the partnership agreement, or otherwise so conducts himself in
mattersrelating to the partnership business that it is not reasonably practicable to carry on the business in partnership with him
The business of the partnership can only be carried on at a loss
Other circumstances render a dissolution equitable.

A:When we say incolvent?

Student: as a partner youhave to give your assets to the partnership. When you are insolvent, the creditors can no longer go after
you.
A:Other than that?
S: If you become libale, either jointly or solidary, you will nomlonger give additional contribution to the partnership.
A: Do we need a court order to establish insolvency?
S: no, because figures don’t lie in financial statement.