Dissolution of a firm cannot take place in which of the situation?

The correct answer is Option (4) → Voluntarily by one partner

The law lists the ways in which a firm is dissolved: by agreement, compulsorily, on certain contingencies (death of a partner among them), by notice and by the court. In a partnership at will, any one partner can dissolve the firm by giving a notice in writing to the other partners, signifying his intention; this mode is dissolution by notice. “Voluntarily by one partner” is not one of the modes listed, so it is the answer.

Option (1) Dissolution by Death — A mode of dissolution. Subject to the contract, a firm is dissolved by the death of a partner, one of the contingencies.

Option (2) Dissolution by Agreement — A mode of dissolution. A firm is dissolved with the consent of all the partners or as their contract provides.

Option (3) Dissolution by Court — A mode of dissolution. At the suit of a partner, the court may order dissolution, for example when a partner becomes insane.