A, B & C set up a business of building a society in a posh area in 3 years and they become partners with sharing of profits in the ratio of 2:2:1. After 3 years building is completed and they dissolved the firm. Is it right to dissolve the firm and if yes, then which type of dissolution is this?

Yes, dissolution on the happening of certain contingencies

The correct answer is option 4- Yes, dissolution on the happening of certain contingencies.

Yes, it is right for A, B, and C to dissolve the firm after completing the building project. This type of dissolution is voluntary dissolution, specifically termed as dissolution 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