Multiple choice

Dissolution by agreement is

  1. dissolution by the adjudication of all the partners or of all the partners, but one as insolvent

  2. dissolution as a result of any agreement between all the partners

  3. dissolution by the business of the firm becoming unlawful

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

Option (1) is incorrect: It is not a dissolution by agreement. Option (2) is correct: U/s 40 of Partnership Act, a firm may be dissolved with the consent of all the partners or in accordance with a contract between the partners. Option (3) is incorrect: It is not a dissolution by agreement.

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