Dissociation & Dissolution

Question 1

Events Creating Partner Dissociation

Answer 1

1) notice of express will to withdraw
2) occurrence of an agreed upon event
3) expulsion per agreement
4) expulsion per unanimous vote
5) judicial expulsion
6) bankruptcy
7) incapacity/death
8) appointment of personal representative
9) termination of an entity partner

Question 2

Events Dissolving General Partnership

Answer 2

Unless contrary agreement, dissolution occurs upon:
1) notice of express will
2) event agreed in partner agreement
3) event that makes it unlawful for business to continue
4) judicial dissolution by application of partner
5) judicial dissolution on application of a transferee

Question 3

Winding Up

Answer 3

The process of settling partnership affairs after dissolution.

Partnership is NOT terminated until winding up is complete.

Question 4

When Can Partner Dissociate?

Answer 4

At any time by providing notice to other partners.

Question 5

Wrongful Dissociation

Answer 5

1) breach of an express provision
2) partnership is for a definite term or particular undertaking

partner who wrongfully dissociates cannot participate in winding up

Question 6

Effects of Partner Dissociation

Answer 6

Dissolution may be rescinded by affirmative vote or consent of remaining partners.

Then dissociating partner is entitled to buyout of their interest.