Terminating a Partnership

The video tutorial explains how to terminate a partnership, focusing on at-will partnerships and those with agreements. At-will partnerships can be dissolved easily by a partner's dissociation, while planned partnerships require adherence to specific terms in the agreement. The video also covers buy-sell agreements and the distribution of interests upon termination.

What is a key characteristic of an at-will partnership?

• It cannot be dissolved without a court order.

• It requires a formal agreement to dissolve.

• It has a fixed term for operation.

• Partners can leave at any time, causing dissolution.

In a planned partnership, what might a partnership agreement specify?

• The events that can lead to termination or dissociation.

• The exact date the partnership must dissolve.

• That partners cannot leave under any circumstances.

• That the partnership must last indefinitely.

What is a buy-sell agreement in the context of a partnership?

• An agreement to sell the partnership to a third party.

• An agreement to sell partnership assets.

• A contract to buy goods for the partnership.

• A provision for buying out a departing partner's interest.

What happens if a partner dissociates from a partnership without specific rules in place?

• The partnership is unaffected.

• The partner is automatically replaced.

• The partnership must be wound up and dissolved.

• The partnership continues without any changes.

How are interests distributed when a partnership is wound up?

• According to seniority.

• Randomly among partners.

• Based on ownership percentage.

• Equally among all partners.