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

Choose the correct answer from the options given below:

(A), (B), (C) and (D)

The correct answer is option 3- (A), (B), (C) and (D).

All four conditions are valid grounds for dissolution if there is no agreement stating otherwise.

NCERT: ".. 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."

Under the law, death of a partner leads to dissolution of the partnership, and since a firm is nothing but a collective name for partners, it may result in dissolution of the firm unless there is a contract to the contrary (i.e., remaining partners agree to continue the business). In this question, it is clearly mentioned “subject to contract between the partners”, which means in the absence of any agreement to continue, death of a partner is treated as a ground for dissolution of the firm.