Match List – I with List – II.
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List - I |
List - II |
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(A) In accordance with a contract between the partners |
(I) Compulsory dissolution |
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(B) When business becomes illegal |
(II) Dissolution by court |
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(C) Death of partner |
(III) Dissolution by agreement |
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(D) Partner became insane |
(IV) Happening of certain contingencies |
Choose the correct answer from the options given below :
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → (A)-(III), (B)-(I), (C)-(IV), (D)-(II)
The Partnership Act lists five ways a firm is dissolved; each event in List I falls under one of them.
(A) In accordance with a contract between the partners — this matches (III) Dissolution by agreement. The partners themselves agreed to it.
(B) When business becomes illegal — this matches (I) Compulsory dissolution. An unlawful business must close whatever the partners want.
(C) Death of partner — this matches (IV) Happening of certain contingencies. Subject to the contract, the death of a partner dissolves the firm.
(D) Partner became insane — this matches (II) Dissolution by court. Insanity of a partner is a ground on which the court may order dissolution at the suit of a partner.
NCERT (2026-27 edition):
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