December 31, 2020. Which of the following events would cause the ABC partnership to dissolve? If so, when would the partnership be dissolved?
Adam, Stanley, and Rosalind formed a partnership in State X to distribute beer and wine. Their agreement provided that the partnership would continue until December 31, 2020. Which of the following events would cause the ABC partnership to dissolve? If so, when would the partnership be dissolved?
Rosalind assigns her interest in the partnership to Mary on April 1, 2018.
b is correct
Upon death of a partner, a firm can get dissolved under UPA, but under RUPA, death of partner will not cause dissolution until majority decides to dissolve the firm within 90 days of death of a partner.
c is correct
When a partner wants to withdraw from partnership before expiry of partnership agreement, then under UPA, firm can get dissolved and the going partner will be liable to compensate for the losses to another partner. But under RUPA, the withdrawal of partner does not lead to dissolution until majority decides to dissolve it within 90 days of withdrawal.
e is correct
If a state legislation makes some business illegal, then in that case, the firm is dissolved by operation of law. The legislation of state to make sale or distribution of liquor illegal can dissolve partnership conducting such businesses.
a is incorrect
Under RUPA and UPA both, if a partner transfers their interest in partnership to other, this cannot be considered as a reason for dissolution or dissociation. A partner in partnership can transfer their transferable interest to another. The person to whom interest is assigned becomes assignee not partner.
d is incorrect
Under UPA and RUPA both, the charging order will not lead to dissolution or dissociation of firm. The holder of the charging order will receive an order of dissolution from court after the term of partnership expires.
f is incorrect
In partnership, any partner is entitled to ask for accounting of firm. Request of accounting cannot lead to dissolution of partnership firms.