What happens if a partner dissociates without prior agreement?

When a partner dissociates from a partnership without a prior agreement outlining the procedure or consequences of such an event, the partnership may face potential dissolution. However, the remaining partners have the option to continue the partnership if they choose to do so. This concept is based on the idea that while one partner may exit, the partnership can persist as long as the remaining partners are willing to carry on the business and satisfy any legal requirements.

The dissolution may occur if the remaining partners do not agree to continue the partnership or if the partnership is structured in such a way that dissociation triggers an automatic dissolution. In many jurisdictions, the remaining partners can decide to form a new partnership or continue the existing entity, which allows for flexibility in managing the partnership's future despite the departure of one partner.

Thus, the correct answer aptly captures the essence of how a partnership is affected by the dissociation of a partner without prior agreement, emphasizing the ability of the remaining partners to either continue or dissolve based on their collective decisions.