How can a partnership be dissolved?

A partnership can be dissolved through several mechanisms, and the correct answer encompasses the most common methods recognized in partnership law. A mutual agreement between partners is a fundamental basis for dissolution, as parties in a partnership can mutually decide to end their business relationship. This ensures that all members are in accord with the dissolution process, thereby avoiding potential disputes.

The expiration of the partnership term is another valid reason for dissolution, particularly when a partnership is formed for a specific duration. Upon reaching that term, the partnership naturally extinguishes unless the partners decide to extend or renew it.

Additionally, a partner's withdrawal is a critical event that can trigger dissolution under certain conditions. If one partner opts to leave, this can lead to a reassessment of the partnership structure and may necessitate its termination unless specified otherwise in the partnership agreement.

The other options do not fully capture the nuances of partnership dissolution. Unilateral decisions by one partner may not always suffice for dissolution unless the partnership agreement specifically allows for it under those circumstances. State intervention is not a requisite for dissolution, as partnerships typically have the ability to manage their affairs independently. Lastly, the notion that a partnership dissolves automatically after a set period does not apply universally, as it depends on the terms set forth in the partnership agreement