Question

Jack and Jill are equal partners in a bottled water partnership. The partnership is specifically limited to an eighteen-month term in order to give Jack and Jill time to fully develop their business. After twelve months, however, Jack withdraws from the partnership to start a new business elsewhere. Jack's withdrawal:
a. is not permissible and constitutes a breach of the partnership agreement.
b. is permissible, because Jack and Jill are equal partners, so neither can penalize the other for leaving.
c. is permissible, because a partner in this case can withdraw from the partnership at any time.
d. is not permissible, because a partner cannot withdraw from the partnership when there are only two partners.

Answer 1

Answer:

A. is not permissible and constitutes a breach of the partnership agreement.

Explanation:

Jack and Jill are equal partners in a bottled water partnership. The partnership is specifically limited to an eighteen-month term in order to give Jack and Jill time to fully develop their business. Jack withdrawal from the partnership after twelve months is not permissible and constitutes a breach of the partnership agreement.

This is so because the partnership agreement is limited to an eighteen-month term which had been consented to by Jack. So Jack withdrawal from the partnership is null and void.