Which of the following will lead to dissolution of partnership firm by agreement?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → With the consent of all the partners
Dissolution by agreement means the partners themselves decide to end the firm, either with the consent of all the partners or under a contract among them.
Why the other options are incorrect
Option (1) Admission of a partner — Incorrect. Admission reconstitutes the firm; the old partnership ends but the firm goes on.
Option (3) Death of a partner — Incorrect. Death dissolves the firm on the happening of a contingency, not by the partners’ agreement.
Option (4) Expiry of the period of partnership — Incorrect. Expiry of the fixed term is also a contingency that ends the firm on its own.
NCERT (2026-27 edition): |