Practicing Success
Practicing Success
CUET Preparation Today
Match the following for the dissolution of partnership firm.
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a) 2, b) 1, c) 3, d) 4 a) 4, b) 3, c) 2, d) 1 a) 3, b) 4, c) 1, d) 2 a) 1, b) 2, c) 3, d) 4 |
a) 4, b) 3, c) 2, d) 1 |
* In accordance with a contract between the partners- Dissolution by Agreement: The firm can be dissolved if all the partners agree to it or if there is a contractual provision for dissolution. * When all the partners or all but one partner, become insolvent, rendering them incompetent to sign a contract- Compulsory Dissolution: A firm may be dissolved involuntarily under certain circumstances. These include when all partners or all but one partner become insolvent, making them unable to enter into contracts. Additionally, if the firm's business becomes illegal or if an event occurs that makes it unlawful for the partners to continue the partnership (e.g., a partner becomes an enemy alien due to a declaration of war with their country and India). * If constituted for a fixed term and this term expired- Dissolution based on Contingencies: The firm may be dissolved based on certain contingencies specified in the partnership agreement. These include the expiry of a fixed term for which the firm was established, the completion of specific ventures outlined in the agreement, the death of a partner, or the declaration of a partner as insolvent. * Partner becomes permanently incapable of performing his duties as a partner- Dissolution by Court: A partner can file a lawsuit seeking the dissolution of the partnership firm. The court may order dissolution on grounds such as a partner's insanity or permanent incapacity to fulfill their duties within the partnership. |
