Frias, Janna Mari C.

BSAIS 2nd Year

Business Laws 2 Atty, Darwin Regio

1. What is Dissolution?

 Dissolution is when a partnership disbands along with its partners because they no longer
want to continue the business.

2. What is Winding up?

 Winding up is the next step after dissolution, wherein to tidy up or settle the
business/partnership.

3. What is Termination?

 This is the final stage or step in dissolution of a partnership, wherein everything has been
settled and the partnership no longer exists.

4. What are the causes of Dissolution? (8)

 Without violating the agreement by the partners:

o Termination of the definite term or undertaking stated in the agreement.
o Express will of a partner
o Express will of all partners who have not assigned their interest or suffered them to be
charged for their separate debts.
o Expulsion of any partner from the business bona fide in accordance with such a power
conferred by the agreement between the partners.
 In contravention of the agreement between the partners, where the circumstances do not
permit a dissolution under any other provision of this article, by the express will of any partner
at any time.
 By any event which makes it unlawful for the business of the partnership to be carried on or for
the members to carry it on in partnership.
 When specific thing, which a partner had promised to contribute to the partnership, perishes
before the delivery in any case by the loss of the thing when the partner who contributed it
having reserved the ownership thereof, has only transferred to the partnership the use or
enjoyment of the same, but partnership shall not be dissolved by the loss of the thing when it
occurs after the partnership has acquired the ownership thereof.
 By death of any partner
 By the insolvency of any partner or of the partnership
  By the civil interdiction of any partner
 By decree of court under the following article

5. Who can sue for dissolution?

 The partners designated by the agreement.

 In the absence of such agreement, all the partners who have not wrongfully dissolved the
partnership.
 The legal representative of the last surviving partner, not insolvent.

6. What are the 2 kinds of Dissolution?

 On application by a partner
o Insanity
o Incapacity
o Misconduct
o Business resulting only to loss.
o Other Circumstances
 On application by a purchaser of a partner’s interest.

7. What are the 2 kinds of Partnership Winding up Businesses?

 Judicially, under the control and direction of the proper court upon cause shown by any
partner, his legal representative, or his assignee.
 Extrajudicially, by the partners themselves without intervention of the court.