Florida Contractor Practice Exam

A partnership will be dissolved under which of the following circumstances?

1. Unlawful Activity

2. Failing to have a primary qualifying agent

3. A court decree under the partnership act

4. A and C

The correct answer is: A and C

A partnership can indeed be dissolved under specific circumstances that affect its legality and functionality. Unlawful activity is one such reason; if a partnership engages in illegal acts or conducts business that violates the law, it may be deemed void, leading to dissolution. This is crucial because partnerships must operate within the legal framework, and failure to do so can jeopardize not only the partnership itself but also the personal liability of its partners. Additionally, a court decree under the partnership act can mandate dissolution if it is determined that the partnership is operating under conditions that are not equitable to partners or if there are other significant disputes. Courts have the authority to intervene and dissolve a partnership to ensure fairness and adherence to the law, reflecting the necessity of legal structures in business dealings. The combination of both unlawful activity leading to inherent illegitimacy and the possibility of court intervention presents a strong basis for selecting the outcome that includes both conditions. Thus, the correct answer encompasses the significant legal foundations under which partnerships may be dissolved, highlighting the importance of compliance and equity in business operations.