California Partition Law Blog
The purpose of this article is to explain what Partnership Dissolutions and Partnership Buyout Agreements are. Understanding the purpose of these contracts is important to business partners attempting to navigate the dissolution or end of their partnership and the loss of a partner. Knowing the differences between a Partnership Dissolution and a Partnership Buyout Agreement is crucial to ensuring the best outcome for your partnership’s end.
What is a “Partnership Dissolution”?
A partnership dissolution is the first step in ending a business relationship between partners in a partnership firm by altering an existing partnership. A partnership is a type of formal relationship between at least two individuals who engage in shared business activity for profit. A partnership dissolution ends the legal relationship between partners. Dissolution can occur because of disputes between partners, departure of a partner from the firm, business failure, bankruptcy, or retirement. California law outlines five ways a partnership can be dissolved.