Multiple choice

Subject to contract between the partners, a firm is dissolved

  1. if constituted for a fixed term, by the expiry of that term

  2. if constituted to carry out one or more adventures or undertakings by completion thereof

  3. by the adjudication of a partner as an insolvent

  4. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Section 42 of the Partnership Act states dissolution 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 adventures or undertakings by the completion thereof, c) by the death of a partner, and d) by the adjudication of a partner as an insolvent.

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