A Review on the Inevitable Reasons under article 720 of the Civil Act: Regarding the Claim for the Dissolution in a Two-Person Partnership

Compared to foreign legislative precedents, Korean civil act takes a legislative attitude that prioritizes a general partnership's corporate identity over the autonomy of a partnership. And the Supreme Court of Korea’s judgments are in a position to emphasize the necessity of the collective nature or existence of a partnership. Under these legal regulations, even if a two-person partnership reaches a situation in which trust is significantly impaired, if the problem can be solved by the withdrawal of a single partner, the court allows the remaining partner to continue the business. It would be reasonable to interpret the dissolution claim by limiting the 'inevitable reasons' as much as possible. In addition, even if the relationship of trust between partners is damaged to some extent, when considering all circumstances related to the cooperative business, it could not be significantly difficult to achieve the partnership’s business. In such a situation, it is more in line with the attitude of our civil law rules to judge whether or not it falls under 'inevitable reasons' by prioritizing the continuation of business in view of the public interest. On the other hand, if it is difficult to achieve the purpose of the partnership business or if the relationship of trust between partners is destroyed to the extent that it is difficult to recover, a partner at fault may also seek the dissolution of a partnership. However, in judging inevitable reasons under §720 of the Civil Act, if dissolution of a partnership through a reasonable balance of interests is against the rule of good faith, it would be appropriate not to allow dissolution.