Discuss circumstances under which a partnership may be dissolved.

Discuss circumstances under which a partnership may be dissolved.

Circumstances under which a partnership may be dissolved include:

1. Expiry of time or accomplishment of purpose. Where the partnership was formed for a definite time or a particular purpose, the expiry of time and accomplishment of purpose terminates the partnership.
2. Mutual agreement among partners - where the partners agree among themselves to terminate the partnership.
3.  Bankruptcy of a general partner - where a court declares the value of one of the general partner’s property insufficient to settle his or her debts.
4. Change in law that makes the operations of the partnership illegal.
5. Permanent inability of a general partner to perform or fulfil his part of the partnership agreement either as a result of disease, insanity or death.
6. Internal dissension among partners - where partners disagree irreconciliably, then the partnership may be terminated.
7. Persistent losses in operation - where the business has continued to operate at a loss, then it is terminated.
8. Fraud, mistake or misrepresentation - where the partnership was formed under fraud, mistake or misrepresentation, a Court of Law may order its dissolution.

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