Multiple choice

A partnership firm may be dissolved

  1. with the consent of all the partners

  2. in accordance with a contract between the partners

  3. Both (1) and (2)

  4. None of these
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A partnership firm may be dissolved either with the consent of all the partners (as per general principles of contract and partnership law) or in accordance with a contract between the partners that specifies dissolution terms. The Partnership Act, 1932 recognizes both modes of dissolution through Sections 40 to 43, which provide for dissolution by agreement, by notice, or on occurrence of specified events.

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