Dissolution of a partnership
Dissolution of a partnership occurs when the partnership relationship terminates. There are two forms of dissolution: a general dissolution and a technical dissolution. A technical dissolution arises when one partner leaves and/or another partner joins, but the business carries on under a new partnership arrangement. In this case, the old firm is dissolved and replaced by a new firm of partners, which takes on the assets and liabilities of the old firm and allows the business to continue uninterrupted. To any person outside the partnership, the partnership appears unchanged. General dissolution, on the other hand, refers to a dissolution of the partnership resulting in the winding up of the business. Following the winding up process, once the liabilities of the partnership to its creditors have been paid and any remaining assets have been distributed, the partnership will then terminate. The Partnership Act sets out certain events, the occurrence of any of which could potentially trigg
