Dissociation of Partnership - Essay Example

Dissociation of Partnerships Dissociation of Partnership Issue ment At various occasions, business plans laid in the best possible manner inevitably suffer failure. It is therefore significant to study issues pertaining to business termination. The plaintiff and the defendant had a legal partnership based on the two-year term agreement that they signed. Rule Statement According to the Revised Uniform Partnership Act (RUPA), dissociation is the change in relation to partners caused by any partner quitting a partnership.

Dissociation attributes to the occurrence of death, filing a bankruptcy or expulsion. Dissociation commences the course to liquidation and eventual termination of a business. Any partner in a firm has the authority to effect separation from a partnership at any given instance by exercising a withdrawal (Mallor, Barnes, & Bowers, 2013). Analysis section Partnership agreements always include dissociation rights. Dissociation from a partnership can either be classified as, non-wrongful or wrongful dissociation.

Non-wrongful dissociations characterize by non-violation of partnership agreements. It includes events like retirement, a procedural and legal withdrawal of a partner in accordance with the partnerships regulations or death of a partner (Mallor, Barnes, & Bowers, 2013). Wrongful dissociation occurs when a dissociation of a given partner is in breach of a clear provision stipulated out in the partnerships agreement. It includes the unwarranted withdrawal of a partner prior to the completion of undertaking or the exhausting the partnerships term.

Wrongful dissociation occurs in instances when a given partner files a bankruptcy petition or becomes a party to a bankruptcy as a debtor. The partners determine the judicial expulsions of a partner based on the requests made by other partners. The determinations of judicial expulsions link to an individual’s continuous and conscious breach of the partnership rules or irrational acts (Mallor, Barnes, & Bowers, 2013). Conclusion Statement Dissociation is not usually an automatic occurrence, as there are varieties of legal factors that lead to dissociation.

Thus, KUPA encourages continuity of partnership after dissociation. Dissolution signifies commencement of winding up procedure followed by redistribution of assets and liabilities (Mallor, Barnes, & Bowers, 2013). Reference Mallor, J. P., Barnes, J., & Bowers, L.T. (2013). Business law: The ethical, global, and e-commerce environment. New York, NY: McGraw-Hill/Irwin.