Explain the duties of partners and the ways in which a partnership may be dissolved.

1. 1 · Open in two lines. Partnership rests on mutual trust and mutual agency: every partner is an agent of the firm in its ordinary business.
2. 2 · Duties of partners.
   • Utmost good faith; true accounts and information.
   • Account for private profits; not to compete.
   • Care and diligence; use firm property only for the firm.
3. 3 · Dissolution without the court. By agreement, expiry or completion, notice (partnership at will), death or bankruptcy, illegality.
4. 4 · Dissolution by the court. Incapacity or unsound mind, misconduct, persistent breach, business only at a loss, just and equitable.
5. 5 · Settlement of accounts. Creditors, partners' advances, capital, surplus in profit ratio.
6. 6 · In Sri Lankan business. A Pettah textile partner who secretly runs a rival shop must account for its profits.
7. 7 · Close in one line. Good faith holds a firm together; clear dissolution rules let it end fairly.

Scoring tip: Two clear halves: duties, then dissolution. A one-line settlement order at the end is a bonus mark.