IX.

DISSOLUTION AND WINDING UP

A. Definition art 1828; vs. winding up and termination
- Sy vs CA, 313 SCRA 328 (1999)
- Idos vs CA, 296 SCRA 194 (1998)
B. Causes of Dissolution art. 1830
1. Voluntary
a. Extrajudicial
I.
Without violation of agreement
- Expiration of term or undertaking art. 1785, 1783
- In a partnership at will, by express will of any or all partners
- Bona fide expulsion of a partner pursuant to agreement
II.
With violation of agreement art. 1830 (2); 1837, par. 2; 1836
b. Judicial
I.
Who may apply art. 1831, par. 1; 1831, par. 2
II.
Grounds art. 1831
- Insanity par.1; art. 1327 (2)
- Other incapacity par.2
- Misconduct or breach - - par.3 Uy vs Puzon, 79 SCRA 598
- Operations at loss par. 5; Lichauco vs Lichauco, 33 Phil. 350
- Other circumstances; dissension, fraud and misrepresentations in form of
partnership Soncuya vs. De Luna, 67 Phil. 646 (1939)
III.
Proper forum Republic Act No. 8799, sec. 5.2
- Rural bank of Lipa City Vs. CA, 366 SCRA 188
c. On application of assignee or purchaser of partners interest art.
1813, 1814
2. Involuntary Art. 1830 (3), (4), (5), (6) & (7)
a. Supervening illegality
b. Loss of specific thing contributed
c. Death of partner
Bearneza vs. Dequilla, 43 Phil. 237 (1922);
Guidote vs. Borja, 53 Phil. 900 (1929);
Goquiolay vs Sycip, 108 Phil. 947 (1960)
d. Insolvency sections 32 and 51, act 1956, insolvency law; Ng Cho Cio
vs. Ng Diong, 1 SCRA 275 (1961)
e. Civil interdicition of partner art. 1327, 38; art.34, RPC
C. Effect of Dissolution Art. 1831, Art. 1832,
1. In general
2. On agency power and authority of partner art. 1832
a. As regards other partners art. 1832; 1833
b. As to 3rd persons art. 1832 (2); 1834 (1); (2); (3); 1934
3. On existing liabilities