Short answer. Yes. Article 1831 of the Civil Code allows a court, on application by or for a partner, to decree dissolution where a partner becomes in any other way incapable of performing his part of the partnership contract. Lasting inability to do one's agreed part is a ground for judicial dissolution.
What the law says
A partner becomes in any other way incapable of performing his part of the partnership contract
Civil Code, Article 1831 — Judicial Dissolution. Read the full provision →
Incapacity to perform is a distinct ground
A partnership often depends on each partner actually doing what he undertook, whether that is running operations, contributing a particular skill, or managing a side of the business. The law addresses the case where a partner can no longer do so. It permits dissolution where a partner becomes in any other way incapable of performing his part of the partnership contract. The words in any other way follow the article's separate mention of a partner declared insane, and they widen the ground to other forms of lasting incapacity, such as serious illness or disability that permanently prevents the partner from carrying out his agreed role.
The incapacity must go to his part of the contract
The ground is tied to the partner's obligations under the partnership contract, not to incapacity in the abstract. What matters is whether he can still perform the part he promised. A brief or minor indisposition from which he will recover does not meet it; the difficulty must be one that genuinely and durably disables him from fulfilling his role in the venture. Because partnerships are often built around a specific person's contribution, the loss of that contribution can strike at the heart of the arrangement, which is why the law treats real incapacity as a proper basis to end it.
A court grants it, not the partners alone
This remedy, too, runs through the court. Dissolution is decreed on application by or for a partner, and the phrase 'or for a partner' matters here: where the incapacitated partner cannot act for himself, the application may be made on his behalf. The court then determines whether the incapacity truly prevents performance. It is not enough for the other partners to decide among themselves that a colleague is no longer up to the job; the court weighs the evidence, which protects the affected partner from being pushed out over a condition that does not actually disable him.
Consider the partner's interest as well
Dissolving on this ground ends the business for everyone and starts the process of winding up and settling accounts, including the incapacitated partner's share. Before petitioning, it is worth checking whether the partnership agreement provides for what happens when a partner falls ill or cannot serve, since it may offer a gentler route such as a buy-out. Handling the situation with care matters, because the affected partner has real financial stakes in the outcome. Still, where the incapacity is genuine and lasting, the law clearly makes it a ground on which a court may dissolve the partnership.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- In the Matter of Urgent Petition for the Release of Prisoners on Humanitarian Grounds, G.R. No. 252117, July 28, 2020 — read the decision on LawPhil →
- Josefina P. Realubit vs. Prosencio D. Jaso and Eden G. Jaso, G.R. No. 178782, September 21, 2011 — read the decision on LawPhil →
- Luzviminda J. Villareal, et al. vs. Donaldo Efren C. Ramirez, et al, G.R. No. 144214, July 14, 2003 — read the decision on LawPhil →