Concept Introduction:
Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.
The Duration of Partnership:
A partnership may be formed for a particular period; in such case, the duration of the partnership is limited to that period. But if the duration of the partnership is not mentioned in the partnership agreement, then the partnership is considered as Partnership at will. The duration of the partnership at will depend upon the partner's will, they can continue the partnership until the desire and dissolve the partnership when they want.
The duration of the partnership if the partnership duration is not mentioned in the partnership contract.
Explanation of Solution
If the partnership contract specifies the duration of the partnership, in such case the duration of the partnership is limited to that period. But if the duration of the partnership is not mentioned in the partnership agreement, then the partnership is considered as Partnership at will. The duration of the partnership at will depend upon the partner's will, they can continue the partnership until the desire and dissolve the partnership when they want.
Hence, the partnership duration is not mentioned in the partnership contract, then the partnership can be ended by the partnership at any time at their will.
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Chapter 12 Solutions
Fundamental Accounting Principles
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