Explain what is meant by dissociation of a partnership.
What will be an ideal response?
The Revised Uniform Partnership Act (RUPA) defines a dissociation as a change in the relation of the partners caused by any partner ceasing to be associated with the carrying on of the business. It may be triggered by a partner's death, retirement, or expulsion. It is the starting point for the partnership's dissolution, winding up (if a winding up occurs), and termination. As a general rule, each partner has the power to dissociate from the partnership at any time. However, the partner does not always have the right to do so. If the partner dissociates without the right (in violation of the partnership agreement), his action is wrongful. The RUPA has the goal of avoiding unnecessary dissolutions of partnerships. As such, it contains a significant change from prior partnership law. It dramatically changes the law governing partnership breakups and dissolution. This entirely new concept, "dissociation," is used in lieu of the UPA term "dissolution" to denote the change in the relationship caused by a partner's ceasing to be associated in the carrying on of the business. Under the RUPA, unlike the Uniform Partnership Act (UPA), the dissociation of a partner does not necessarily cause a dissolution and winding up of the business of the partnership.
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