Under the Uniform Partnership Act (UPA), dissolution of a partnership is said to be by the operation of law when:
A) the partnership is at will and a partner wants to leave the organization.
B) the entire partnership becomes bankrupt.
C) the term of the partnership agreement has expired.
D) all the partners decide that it is preferable to dissolve than to continue.
E) the partners decide to discharge a partner though no provision permits them to do so.

Question

Quizplus · Accepted Answer

According to the UPA, dissolution of a partnership by the operation of law occurs when the partnership business becomes unlawful or it is impractical to carry on the business, or when all partners, except one, are bankrupt or any partnership has been declared void. Therefore, option B is the correct choice as it indicates the entire partnership becoming bankrupt, which leads to the dissolution of the partnership.

Under the Uniform Partnership Act (UPA), Dissolution of a Partnership