general partnership dissolution agreement
dissolution of partnership occurs when there is a change in the relation between the partners regarding the partnership business. if the partners choose to terminate the business after the date of dissolution, they must wind up the affairs of the partnership and notify all interested parties. unless the partnership agreement states the proportion of each partner’s interest in the business and how the partners will share in the profits and losses of the business, all partners in a general partnership share equally in the profits and losses. when at least one partner ceases to be associated with the partnership, dissolution of the partnership occurs. a partner’s interest is the amount of the individual’s capital account if all the assets are sold and distributed to the each partner in proportion to their interests in the business. the partners may agree by unanimous consent in a general partnership to terminate the business and wind up the business affairs upon a change in the relation between the partners.