Under what circumstances can a partnership be involuntarily dissolved?

A partnership can be involuntarily dissolved through a court decree due to misconduct or incapacity. This legal remedy is typically sought when one or more partners have engaged in conduct that is harmful to the partnership's interests—such as fraud, mismanagement, or illegal activities—or when a partner is unable to fulfill their duties due to incapacity, potentially impacting the overall functionality and viability of the partnership.

The court can intervene in these situations to protect the interests of the remaining partners and the partnership itself. When it is established that certain actions or conditions are detrimental to the partnership, the court may order dissolution to ensure that the partnership can no longer operate under those compromised circumstances. This maintains fairness and protects the investments and efforts of the other partners.

Other options, such as mutual agreement or a partner's request for retirement, reflect situations where dissolution is consensual rather than involuntary. Market changes, while they might affect a partnership's operations, do not serve as a legal basis for involuntary dissolution unless they coincide with misconduct or incapacity that warrants court intervention.