Question

Jerry, who has been a partner of JQP General Partnership for four years, decides to withdraw from the partnership despite a provision of the written partnership agreement prohibiting any withdrawal of partner for five years. What is the result of Jerry's withdrawal?

a. Jerry's withdrawal is not effective until he obtains a court ordered decree of his dissociation.

b. Jerry's withdrawal causes a dissolution of the partnership despite the violation of the partnership agreement.

c. it causes dissolution of the partnership by operation of law.

d. it has no bearing on the continued operation of the partnership.

Answer 1

The correct answer is option A. This is because of the fact that The clause mentioned in the partnership agreement always supercedes the provisions of the law. The provisions of the law can only come into play where there is no mention of any clause related to the area in the agreement. Since, in this case, an agreement provides for the conditions as to the withdrawl of a partner, it is final. Now, if Jerry wants to withdraw from the partnership, It is against the law to breach the agreement and he cannot withdraw until he obtains a court order decree.