Match List-I with List-II. List-I List-II (A) Compulsory Dissolution…

Match List-I with List-II.

List-I	List-II
(A) Compulsory Dissolution	(I) Partner becomes insane
(B) Dissolution by notice	(II) Death of a partner
(C) Dissolution by court	(III) Business become illegal
(D) Dissolution on certain contingencies	(IV) Partnership at will

Choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → (A) - (III), (B) - (IV), (C) - (I), (D) - (II)

A firm can be dissolved in five ways: by agreement, compulsorily, on certain contingencies, by notice and by the court. Each list item is one of these ways, and each List-II event belongs to one of them.

(A) Compulsory Dissolution — this matches (III) Business become illegal. When the business becomes illegal (or all partners but one become insolvent), the firm must be dissolved whatever the partners want.

(B) Dissolution by notice — this matches (IV) Partnership at will. In a partnership at will any partner can end the firm by giving written notice to the others.

(C) Dissolution by court — this matches (I) Partner becomes insane. On the suit of a partner, the court may order dissolution when a partner becomes insane.

(D) Dissolution on certain contingencies — this matches (II) Death of a partner. Subject to the contract, the firm is dissolved on the death of a partner, the expiry of its term, the completion of its venture or a partner’s insolvency.

NCERT (2026-27 edition):
Dissolution of a Firm – “… 2. Compulsory Dissolution: A firm is dissolved compulsorily in the following cases: (a) when all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract; (b) when the business of the firm becomes illegal; or …”

NCERT (2026-27 edition):
Dissolution of a Firm – “… 4. Dissolution by Notice: In case of partnership at will, the firm may be dissolved if any one of the partners gives a notice in writing to the other partners, signifying his intention of seeking dissolution of the firm.”

NCERT (2026-27 edition):
Dissolution of a Firm – “… 5. Dissolution by Court: At the suit of a partner, the court may order a partnership firm to be dissolved on any of the following grounds: (a) when a partner becomes insane; …”

NCERT (2026-27 edition):
Dissolution of a Firm – “… 3. 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; …”