Illegality of business operations triggers dissolution of partnership, except where illegality is confined to separate lawful adventures. A partnership is compulsorily dissolved when an event renders it unlawful for the firm's business to be carried on or for the partners to carry it on in partnership; however, illegality confined to one or more separate adventures of a multi-venture firm does not automatically dissolve the firm as to its lawful adventures. A former clause on adjudication of partners as insolvent was omitted by later enactment.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Illegality of business operations triggers dissolution of partnership, except where illegality is confined to separate lawful adventures.
A partnership is compulsorily dissolved when an event renders it unlawful for the firm's business to be carried on or for the partners to carry it on in partnership; however, illegality confined to one or more separate adventures of a multi-venture firm does not automatically dissolve the firm as to its lawful adventures. A former clause on adjudication of partners as insolvent was omitted by later enactment.
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