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ACCA Applied Skills · Corporate and Business Law (Global) · Partnerships

Dalia and Emeka are partners in a firm formed for a single project, a one-off construction of a warehouse. The project is completed. Which statement about the partnership is correct?

A partnership formed for a single venture is automatically dissolved when that undertaking is completed, unless the partners have agreed otherwise. It does not need a court order or the death of a partner to end.

  1. AIt continues indefinitely as a partnership at will
  2. BIt is automatically dissolved because the single undertaking has been completedCorrect
  3. CIt can only be dissolved by a court order
  4. DIt is dissolved only if one partner dies

Explanation

Where a partnership is entered into for a single venture or undertaking, it is dissolved when that undertaking ends, unless otherwise agreed. Court order is not needed, and death is just one other ground of dissolution.

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