BL 2 Q.3 2024

1. 1. It signifies the end of the partnership life.

• Dissolution

• Winding-up

• Termination

• Incorporation

1. 2. It is the change in the relation of the partners caused by any partner ceasing to be associated in the carrying on of the business.

• Dissolution

• Winding-up

• Termination

• Incorporation

2. 3. The following are causes of extra-judicial dissolution without violation of the agreement, except:

• By termination of definite term or particular undertaking specified in the agreement.

• By the express will of any partner, who must act in good faith when no definite term or particular undertaking is specified.

• By expressly withdrawal of a partner even before the expiration of the period, with or without justifiable cause.

• By the expulsion of any partner from the business bona fide in accordance with such a power conferred by the agreement between the partners.

4. 4. A conscious and intentional design to do a wrongful act for a dishonest purpose or moral obliquity which may be the moving force in the dissolution of partnership.

• Bad faith

• Malice

• Fraud

• Machination

5. 5. It is the actual process of settling the partnership business or affairs after dissolution.

• Dissolution

• Winding up

• Termination

• Incorporation

6. 6. The following are grounds for judicial dissolution, except:

• 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.

• When any partner retires.

7. 7. By operation of law, a partnership can be dissolved through:

• By the death of any partner.

• The business of the partnership can only be carried on at a loss.

• A partner has been guilty of such conduct as tends to affect prejudicially the carrying on of the business.

• Other circumstances render a dissolution equitable.

8. 8. This may be resorted to when the facts which may cause of dissolution are open to dispute.

• In contravention of the agreement

• By decree of court

• Judicial determination

• By operation of law

9. 9. Other causes for the dissolution of partnership are the following, except:

• When a new partner is admitted into an existing partnership.

• When any partner retires.

• When a partner has been declared insane in any judicial proceeding or is shown to be of unsound mind.

• When the other partners assign their rights to the sole remaining partner.

10. 10. Upon dissolution, the authority of the partners to represent the partnership is confined only to these acts.

• Acts necessary for the perpetuation of the partnership.

• Acts necessary to wind up partnership affairs or to complete transactions begun but not then finished.

• Acts necessary to maintain the partnership.

• Acts necessary to begin the partnership.