Legal Definitions - dissolution

Definition: Dissolution is when a legal relationship between two parties, like a partnership, contract, or marriage, comes to an end or termination. In partnership law, dissolution is a significant change in the relationship between partners, which ends the governance-type relation among them. When a partner dies, it usually leads to the dissolution of a partnership. During dissolution, the partnership's assets are liquidated.

1. Partnership Dissolution: Two friends started a business together, but after a few years, they had a disagreement and decided to end their partnership. This is an example of dissolution because the legal relationship between the two partners has come to an end.

2. Marriage Dissolution: A couple decides to get a divorce, which is a legal process that leads to the dissolution of their marriage. This means that their legal relationship as a married couple has come to an end.

3. Contract Dissolution: A company hires a contractor to complete a project, but the contractor fails to deliver the work on time. The company decides to terminate the contract, which leads to the dissolution of their legal relationship.

These examples illustrate how dissolution is the act of ending a legal relationship between two parties, which can happen in various contexts, such as partnerships, marriages, or contracts.