Legal Updates

The Court has the authority to order the dissolution of a partnership unless there is a provision in the partnership agreement that restricts it

November 5, 2024
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Partners sought that the Court dissolve a partnership due to a loss of trust in the other partner, who contended that the Court lacks authority to do so.

The Court held that it had authority to order the dissolution of the partnership. A Court may dissolve a partnership at the request of one or more partners, for example when the partnership agreement has been breached. Limiting the Court's authority to dissolve must be expressly written in the partnership agreement, or by clear circumstances that establish an intention to do so. Here, there was no express provision in the partnership agreement and there is no other thing that shows an intention to prevent dissolution by the Court, and therefore the Court has authority to dissolve the partnership due to a loss of trust between the partners.