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HomeCorporations CodeGENERAL PROVISIONSCh. 5Art. 8§ 16801 Partnership Dissolution Events

§ 16801 Partnership Dissolution Events

Corporations Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 16801 Partnership Dissolution Events

This law lists the specific things that make a partnership end and have its business wrapped up.

Key Takeaways

  • •A partnership can end when at least half of the partners want to dissolve it.
  • •A partnership with a set end date or specific project ends when the time runs out, the project finishes, or all partners agree to close it.
  • •The partnership agreement itself may name events that trigger dissolution.
  • •If the law makes the business illegal, it must be stopped unless the problem is fixed within 90 days.
  • •A court can order dissolution if the partnership’s purpose is blocked, a partner’s behavior makes it impossible to continue, or the partnership can’t follow its own rules.

Example

Four friends run a bakery together. Two of them decide they no longer want to be partners and tell the others they want to close the bakery.

Because at least half of the partners (2 out of 4) have expressed a clear wish to dissolve, the partnership can be ended and its affairs settled under this law.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 16801 Partnership Dissolution Events

A partnership is dissolved, and its business shall be wound up, only upon the occurrence of any of the following events: (1) In a partnership at will, by the express will to dissolve and wind up the partnership business of at least half of the partners, including partners, other than wrongfully dissociating partners, who have dissociated within the preceding 90 days, and for which purpose a dissociation under paragraph (1) of Section 16601 constitutes an expression of that partner’s will to dissolve and wind up the partnership business. (2) In a partnership for a definite term or particular undertaking, when any of the following occurs: (A) After the expiration of 90 days after a partner’s dissociation by death or otherwise under paragraphs (6) to (10), inclusive, of Section 16601, or a partner’s wrongful dissociation under subdivision (b) of Section 16602 unless before that time a majority in interest of the partners, including partners who have rightfully dissociated pursuant to subparagraph (A) of paragraph (2) of subdivision (b) of Section 16602, agree to continue the partnership. (B) The express will of all of the partners to wind up the partnership business. (C) The expiration of the term or the completion of the undertaking. (3) An event agreed to in the partnership agreement resulting in the winding up of the partnership business. (4) An event that makes it unlawful for all or substantially all of the business of the partnership to be continued, but a cure of illegality within 90 days after notice to the partnership of the event is effective retroactively to the date of the event for purposes of this section. (5) On application by a partner, a judicial determination that any of the following apply: (A) The economic purpose of the partnership is likely to be unreasonably frustrated. (B) Another partner has engaged in conduct relating to the partnership business that makes it not reasonably practicable to carry on the business in partnership with that partner. (C) It is not otherwise reasonably practicable to carry on the partnership business in conformity with the partnership agreement. (6) On application by a transferee of a partner’s transferable interest, a judicial determination that it is equitable to wind up the partnership business after the expiration of the term or completion of the undertaking, if the partnership was for a definite term or particular undertaking at the time of the transfer or entry of the charging order that gave rise to the transfer. (Added by Stats. 1996, Ch. 1003, Sec. 2. Effective January 1, 1997.)

Last verified: January 10, 2026

Key Terms

partnershipagreementterminationdeathexpirationdissociationcompletioncontinuation

Related Statutes

  • § 16701 Partner Buyout After Dissociation
  • § 16703 Partner Dissociation Liability
  • § 16404 Partner Fiduciary Duties
  • § 16908 Entity Conversion To Partnership
  • § 16909 Entity Conversion Continuity

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Corporations Code. Section 16801.
View Official Source