Question

If no fixed duration of the partnership is specified, the partnership is a partnership in perpetuity, which means that the partnership cannot be dissolved.
a. True
b. False

Answer 1

The answer is b. false.

In the absence of a partnership agreement on fixed duration, the Partnership Act 1890 may apply.

Under the Act, a partnership will be automatically dissolved  if: a partner dies

·         a partner becomes bankrupt;

·         the court orders it to be dissolved;

·         it's illegal to carry on the business of the partnership;

·         the partnership was created meet a goal and this  specific objective or the project is complete; or

a partner gives notice to dissolve the partnership to the other partners. The