Q: At what point can I disband a partnership?
A: In the absence of explicit terms or a common commercial practice, the answer depends on whether a defined time was set for the partnership.
If the partnership was set for a defined time, neither party can pull out until the specified time, the partnership runs bankrupt or one partner dies. If dividing the assets at the set time would cause a loss, they should be sold first (C.M. 176:15, 19; Pischei Teshuvah 176:23).
If there was no set time, each partner can pull out at any time. The assets should be divided or sold, or one partner should buy out the other (C.M. 176:16; Shach 176:29).
If the nature of the business is such that there is a set time for selling, such as Pesach products, it is as if they stipulated that time. Each party can restrain the other from disbanding the partnership until the expected time arrives and the merchandise is sold (C.M. 176:17).