Which of the following is a case of dissolution of a partnership firm on happening of certain contingencies?

When a partner dies

The correct answer is option 2- When a partner dies.

When a partner dies is a case of dissolution of a partnership firm on 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.

OTHER OPTIONS

• When the firm is dissolved by agreement- This is case of dissolution by agreement.
• When a partner becomes permanently incapable of performing his duties- This is case of dissolution by court.
• When the business of the firm becomes illegal- This is case of compulsory dissolution.