Which of the following is not a case of dissolution of a partnership firm by agreement?
Answer & explanation
Correct answer: option 1
The correct answer is option 1- By the adjudication of a partner as an insolvent.
By the adjudication of a partner as an insolvent is not a mode of dissolution of partnership through agreement.
Dissolution by Agreement: A firm is dissolved : (a) with the consent of all the partners or (b) in accordance with a contract between the partners.
(a) When all the partners provide their consent, the firm can be dissolved. This means that all partners agree to terminate the partnership and cease its operations.
(b) Dissolution can also take place in accordance with a contract that has been established between the partners. The partnership agreement, which outlines the terms and conditions of the partnership, may include provisions for the dissolution of the firm.