LD 1609
pg. 87
Page 86 of 148 An Act To Establish the Uniform Partnership Act Page 88 of 148
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LR 1469
Item 1

 
B.__In the case of a partnership for a definite term or
particular undertaking, before the expiration of the term or
the completion of the undertaking:

 
(1)__The partner withdraws by express will, unless the
withdrawal follows within 90 days after another
partner's dissociation by death or otherwise under
section 1061, subsections 6 to 10 or wrongful
dissociation under this subsection;

 
(2)__The partner is expelled by judicial__determination
under section 1061, subsection 5;

 
(3)__The partner is dissociated by becoming a debtor in
bankruptcy; or

 
(4)__In the case of a partner who is not an individual,
trust other than a business trust or estate, the
partner is expelled or otherwise dissociated because
the partner willfully dissolved or terminated.

 
3.__Liability for wrongful dissociation.__A partner who
wrongfully dissociates is liable to the partnership and to the
other partners for damages caused by the dissociation.__The
liability is in addition to any other obligation of the partner
to the partnership or to the other partners.

 
Comment

 
(This is Section 602 of the Uniform Partnership Act (1997).)

 
1. Subsection (a) states explicitly what is implicit in UPA
Section 31(2) and RUPA Section 601(1) - that a partner has the
power to dissociate at any time by expressing a will to withdraw,
even in contravention of the partnership agreement. The phrase
"rightfully or wrongfully" reflects the distinction between a
partner's power to withdraw in contravention of the partnership
agreement and a partner's right to do so. In this context,
although a partner can not be enjoined from exercising the power
to dissociate, the dissociation may be wrongful under subsection
(b).

 
2. Subsection (b) provides that a partner's dissociation is
wrongful only if it results from one of the enumerated events.
The significance of a wrongful dissociation is that it may give
rise to damages under subsection (c) and, if it results in the
dissolution of the partnership, the wrongfully dissociating
partner is not entitled to participate in winding up the business
under Section 804.


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