Question

Charles and alfredo have been two partners in a small law firm for a year. since the past 3 months, charles had been taking kickbacks from clients without alfredo's knowledge. a year later, upon discovering the same, alfredo decides to end the partnership, even though the partnership agreement calls for a term of five years. this is an example of _____ dissociation.

Answer 1

wrongful

Step-by-step explanation:

By disassociation, it simply refers to a partner or partners withdrawing from a partnership. So when a partner leaves a partnership, he/she is disassociating from it.

Since the partnership agreement establishes a minimum 5 year period and doubtfully it included kickbacks as a legal cause to disassociate, then Alfredo might be in trouble. The best hing for him to do is agree with Charles the terms of the disassociation.

The disassociated partner is liable for pre-dissociation partnership obligations, and many times (depending on the case), he/she might be liable for post-dissociation liabilities incurred within two years after the dissociation. In order to avoid post-disassociation liabilities the partner must file a public statement of dissociation.

The best thing Alfredo should do is go to court and request Charles expulsion from the partnership instead of him leaving the partnership. If Alfredo can prove that Charles received kickbacks from clients, then he could get the court to approve Charles expulsion for unethical or even illegal behavior.

Answer 2

Compulsory

Explanation:

Remember, it was because one of the parties (Charles) probably defaulted the agreement that lead to the other party (Alfredo) ending the partnership.

This type of partnership disassociation scenario is called a compulsory disassociation.

Therefore, even though the partnership agreement calls for a term of five years, it was legally ended.