Dissolution of Partnership (Sections 39-57): Termination of partnership relationship. Modes: By agreement (all partners consent), notice (partner gives notice in partnership at will), death of partner, insolvency, illegality of business, or court order. Notice provision: In partnership at will, one month's notice dissolves partnership. Effects: Partners cease to be agents; firm ceases to exist; assets divided. Partner death: Partnership dissolves unless agreement provides otherwise. Continuing partnership: Partners can agree to continue after dissolution (with new partners). Liability after dissolution: Partners remain liable for outstanding debts; liability continues. Final accounts: Partnership dissolved; assets realized; liabilities paid; remainder distributed to partners. Case law: Aboitiz v. Price establishes dissolution effects. For accountants, partnership dissolution requires final accounting, asset valuation, and liability settlement. Understanding dissolution critical for partnership financial reporting and tax treatment. Exam tip: Identify dissolution mode; apply corresponding termination process; assess partner liability post-dissolution.