Multiple choice

A firm may be dissolved by a court in all of the following circumstances, except

  1. misconduct by a partner

  2. insanity of partner

  3. completion of venture

  4. persistent breach of agreement by a partner
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Option (1) is incorrect: Under Section 44 of the Partnership Act, either a partner or a court itself can ask for dissolution of firm in case of misconduct by a partner. Option (2) is incorrect: Under Section 44 of the Partnership Act, either a partner or a court itself can ask for dissolution of firm in case of insanity of partner. Option (3) is correct: The completion of venture is a contingent event, which results in dissolution of a firm. All other options are the cases when a court orders for dissolution of firm. Option (4) is incorrect: Under Section 44 of the Partnership Act, either a partner or a court itself can ask for dissolution of firm, in case of persistent breach of agreement by a partner.

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