Define dissolution under the UPA and discuss its three causes
The UPA defines dissolution as the change in the relation of the partners caused by any partner's ceasing to be associated in the carrying on of the business. Dissolution may be caused by (1) an act of the partners, (2) operation of law, or (3) court order. A partnership is rightfully dissolved by act of the partners if: (a) the partners agree to dissolve it; (b) the time provided in the agreement has ended or the purpose has been accomplished; (c) a partner withdraws from a partnership at will; or (d) a partner is expelled in accordance with the partnership agreement. Dissolution occurs by operation of law upon the death of a partner, the bankruptcy of a partner or the partnership, or the subsequent illegality of the partnership. Dissolution can occur by court order if the court finds: (a) a partner has been adjudicated mentally incompetent; (b) a partner engaged in conduct prejudicial to the business or willfully breached the partnership agreement; (c) the business can only be carried on at a loss; or (d) other equitable reasons.
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Indicate whether the statement is true or false
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What will be an ideal response?
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