19: Partnership Operation and Termination

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Learning Objectives

After reading this chapter, you should understand the following:

The operation of a partnership, including the relations among partners and relations between partners and third parties
The dissolution and winding up of a partnership

19.2: Operation- Relations among Partners
This page outlines the duties and rights of partners in a partnership according to the Uniform Partnership Act (UPA) and Revised Uniform Partnership Act (RUPA). Partners owe duties such as loyalty and care, while holding rights to profit distributions and management participation. The importance of written agreements is stressed, as well as the fiduciary responsibilities inherent in partnerships.
19.3: Operation- The Partnership and Third Parties
This page details partnership liability under RUPA, covering contract, tort, and tax implications. It explains partners' roles as agents, joint and several liabilities, and personal accountability for partnership debts. New RUPA provisions enable partners to clarify authority and limit liability through filings. Also, while criminal liability usually applies to individuals, partners may share liability.
19.4: Dissolution and Winding Up
This page covers the dissolution, dissociation, and winding up of general partnerships under the UPA and RUPA. It explains that dissolution does not terminate a partnership, which can arise from various causes, while dissociation allows a partnership to continue despite a partner's exit.
19.5: Cases
This page discusses several court cases involving partnership disputes. In Gilroy v. Conway, the court awarded Gilroy $53,000 after Conway misappropriated assets and disbanded their business. Another case involved Voeller, whose attempt to sell partnership property was ruled unenforceable due to lack of authority. Additionally, partner Long was found to have authority in settling a lawsuit, leading to liability decisions.
19.6: Summary and Exercises
This page summarizes the Uniform Partnership Act (UPA) and Revised Uniform Partnership Act (RUPA), detailing the duties and rights of partners when no specific agreement exists. Key duties include loyalty and communication, while rights encompass profits and management. It outlines the differing dissolution and dissociation processes between UPA and RUPA, as well as how partnership assets address liabilities, affecting partner liability to creditors.

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