Partnership Dissolution

What is partnership dissolution? - the change in the relationship of the

partners
- ends association of individuals but not
necessarily mean end of business
operation
What are the causes of dissolution? 1. Without violation of the agreement
between partners
2. With violation of agrement
3. By any event that makes it unlawful for
the business/partners to continue
4. When a thing perishes/is lost before
partnership has acquired ownership
5. Death of any partner
6. Insolvency of any partner/partnership
7. Civil interdiction of any partner
8. Decree of court

When will a partnership be - by termination of the definite term

determinated without violation of the - by the express will of any partner
agreement? - by the express will of all partners
- by expulsion of any partner
What happens after dissolution? Dissolution dissolves the old parntership
but the business continues under a new
partnership agreement
What 2 ways can a new partner be 1. by purchase of interest
accepted? 2. by investment
What does it mean when you say a it is built upon the mutual trust and
partnership relationship is 'fiduciary'? confidence of all partners among each
other
How must an incoming and existing current market value/fair value
parnter's asset be stated?
What is bonus? the amount of capital or equity by one
partner transferred to another, with no
cash consideration, for the good
reputation, industry and/or business
advantage of the latter
 What can bonus also represent? capital credit given to a partner for
his/her distinct know-how or special
service which is available only to the
partnership
What happens if the total agreed - recognition of bonus
capital is EQUAL to the total - bonus to old/new partners
contributed capital?
What happens if the total agreed - recognition of undervalued asset or
capital is GREATER than the total revaluation increase of an existing asset
contributed capital?
What happens if the total agreed - recognition of overvalued asset or
capital is LOWER than the total revaluation decrease of an existing asset
contributed capital
What happens if a new partner's - any difference is attributable to bonus
contributed capital is LESS than their to new partner
agreed capital?
What happens if a new partner's - any difference is attributable to bonus
contributed capital is GREATER than to old partners
their agreed capital?
What happens if the problem is silent? the total agreed capital is equal to total
contributed capital