How is a partnership dissolved?

Generally, a partnership terminates or dissolved when a partner discontinues participating in the business operation. The dissolution can happen in three different ways.

By an act of the partners- When a partner agrees to dissolves partnership at a particular time. For instance, partners can come to an agreement that a partnership should continue for a span of five years. The partners can dissolve the agreement at the end of the five (5) years. Sometimes, it can be mentioned that a partner can be suspended under a specific condition. If a partner breaks a rule, then this can dissolve the partnership.
By operation of law- A Partnership is a consequence of an agreement which is governed by the law. Therefore, any hindrance to the agreement or unlawful operating of business can cancel the partnership contract. For instance; you cannot make a valid partnership for selling illegal things.
By court’s decree- A partner can demand partnership dissolution, and the law will allow the dissolution only under this conditions: a partner’s incapability to work; breach of the agreement by a partner; when a partner is mentally unstable; and the misbehaviour of a partner that impacts the partnership.
Statement of Dissolution – This is done by filing the statement to the state’s secretary. The form can be taken from the website of the secretary of state. The form must have the partnership name, date and reason of dissolution.
Personal Notification- This can be done by giving personal notice to the partnership’s creditors. Also, inform who is associated with the partnership by publishing the notification in a newspaper.