Which is a requirement if a partner dies or withdraws from a partnership?

In the context of partnerships, the death or withdrawal of a partner generally leads to the dissolution of the existing partnership. This is based on the principle that partnerships are often formed with the understanding and trust between the specific individuals involved. When a partner exits due to death or withdrawal, it fundamentally alters the partnership's composition, often affecting the dynamics, decision-making, and obligations that were previously agreed upon.

Consequently, the partnership must be dissolved and a new partnership can be formed if the remaining partners choose to continue their business relationship. This is essential to ensure that the new partnership reflects the updated circumstances, including the adjustment of shares and responsibilities among the remaining partners.

The other options present scenarios that are typically not allowed under standard partnership law without first addressing the dissolution. For instance, while a buyout may occur after dissolution, it cannot replace the necessity of formally dissolving the partnership first. Therefore, recognizing the dissolution is fundamental to understanding how partnerships function in response to a partner's death or withdrawal.