ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships
Adaeze and Bruno run a general partnership with no written partnership agreement. Adaeze gives notice that she wishes to leave the business immediately. Under the general law of partnership applying to a partnership of indefinite duration, what is the effect of her notice?
Where a partnership has no fixed duration, any partner may dissolve it by giving notice. Court involvement and the other partners' consent are not needed, so Adaeze's notice dissolves the partnership as between all partners.
- AThe partnership is dissolved only if a court order is obtained
- BThe partnership is dissolved as between all partners, as the notice is a valid ground of dissolutionCorrect
- CBruno may continue the same partnership and Adaeze remains liable for future debts
- DThe notice has no effect until all partners vote unanimously to accept it
Explanation
A partnership at will, which has no fixed term, can be ended by any partner giving notice of dissolution. No court order or consent of the other partners is required. Option C is wrong because the firm is dissolved and a new arrangement would be needed to continue.
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