Dissolution by agreement is
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dissolution by the adjudication of all the partners or of all the partners but one as insolvent
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dissolution as a result of any agreement between all the partners
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dissolution by the business of the firm becoming unlawful
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all of these
Reveal answer
Fill a bubble to check yourself
B
Correct answer
Explanation
Dissolution by agreement under Section 40 of the Indian Partnership Act occurs when all partners mutually agree to end the partnership. It's a consensual dissolution - the partners decide together to wind up the firm. Option A describes dissolution by adjudication (insolvency), and Option C describes dissolution by supervening illegality - both are different grounds for dissolution, not 'dissolution by agreement'. Only Option B correctly defines this concept.