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Jemshah
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Asked: 2023-01-20T14:04:26+00:00 In:

Highlight five circumstances under which a court may wind up a partnership business.(10 marks)November 2022

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Highlight five circumstances under which a court may wind up a partnership business.(10 marks)November 2022

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    1. Expiration of the partnership term: If the partnership agreement specifies a term for the partnership, and that term has expired, the court may wind up the partnership business.
    2. Mutual agreement of the partners: If all the partners mutually agree to wind up the partnership business, the court may approve the dissolution and wind up the partnership.
    3. Insolvency of the partnership: If the partnership is unable to pay its debts, the court may wind up the partnership business on the grounds of insolvency.
    4. Death or incapacity of a partner: If a partner dies or becomes incapacitated, the court may wind up the partnership business, unless the partnership agreement provides otherwise.
    5. Misbehavior of a partner: If a partner is guilty of misconduct, such as fraud, embezzlement, or gross negligence, the court may wind up the partnership business on the grounds of misconduct.
    6. Material Breach of Partnership Agreement: If a partner breaches a material term of the partnership agreement, the court may wind up the partnership business on the grounds of breach of contract.
    7. Change in circumstances: If circumstances have changed so substantially that the partnership can no longer carry on business advantageously, the court may wind up the partnership business.
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