Dissolution of Partnership Law and Legal Definition

Dissolution of partnership is that change in the partnership relation which ultimately culminates in its termination. It is the change in the relation of partners caused by any partner's ceasing to be associated in the carrying on of the business. Under statutory provision distinguishing between dissolution of a partnership and winding-up the business, the conduct of a partner inconsistent with the continuance of a partnership results in the dissolution of the partnership in spite of the fact that liquidation is not completed or some appearances of the partnership continue. [Fooshe v. Sunshine, 96 Cal. App. 2d 336 (Cal. App. 1950)]