Dissolution of a firm takes place on the happening of certain contingencies in the following cases:

(A) By the death of a partner

(B) By the adjudication of a partner as an insolvent

(C) When the business of the firm becomes illegal

(D) If constituted for a fixed term, by the expiry of that term

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is option 1- (A), (B) and (D) only.

(A) By the death of a partner- On the happening of certain contingencies.

(B) By the adjudication of a partner as an insolvent-  On the happening of certain contingencies.

(C) When the business of the firm becomes illegal- Compulsory Dissolution.

(D) If constituted for a fixed term, by the expiry of that term- On the happening of certain contingencies.

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.