Dissolution is the act of bringing an end or termination of a legal relationship between two parties, such as a partnership, contract or marriage.
In the context of partnership law, dissolution is a fundamental change of the relations among partners in a partnership, ending a governance-type relation among the partners in the partnership. Generally, the death of a partner operates as a dissolution of a partnership. As part of dissolution, liquidation of the partnership's assets occurs.
[Last updated in October of 2022 by the Wex Definitions Team]
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