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:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → (A), (B), (C) and (D)
Under the Partnership Act, a firm is dissolved on the happening of certain contingencies, subject to any contract between the partners.
(A) if constituted for a fixed term, by the expiry of that term. Correct. A firm formed for a fixed period ends when that period is over.
(B) if constituted to carry out one or more ventures, by the completion thereof. Correct. A firm formed for a particular venture ends when the venture is complete.
(C) by the death of a partner Correct. On the death of a partner the firm is dissolved, unless the partners have agreed that it will continue.
(D) by the adjudication of a partner as an insolvent Correct. When a court declares a partner insolvent, the firm is dissolved, again subject to the contract between the partners.
NCERT (2026-27 edition):
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