On the happening of certain contingencies, Subject to contract between the partners, a firm is dissolved,
(A) if constituted for a fixed term, by the expiry of that term.
(B) if constituted to carry out one or more ventures, by the completion thereof.
(C) by the death of a partner
(D) by the adjudication of a partner as an insolvent
Choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B), (C) and (D)
Subject to the contract between the partners, a firm comes to an end by itself when one of four events happens.
(A) if constituted for a fixed term, by the expiry of that term. Correct. The agreed period is over.
(B) if constituted to carry out one or more ventures, by the completion thereof. Correct. The purpose of the firm is achieved.
(C) by the death of a partner Correct. Unless the contract provides that the others carry on.
(D) by the adjudication of a partner as an insolvent Correct. An insolvent partner can no longer contract.
NCERT (2026-27 edition): |