Dissolution of a firm takes place on the happening of certain contingencies under Section 42 of the Indian Partnership Act. Choose them from the following:(A) By the death of a partner(B) By the adjudication of a partner as an insolvent(C) When the business of the firm becomes illegal(D) If constituted for a fixed term, by the expiry of that termChoose the correct answer from the options given below:
- A(A), (B) and (D) only
- B(A), (B) and (C) only
- C(A), (B), (C) and (D) only
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Section 42 specifically highlights "Dissolution on the happening of certain contingencies", which includes:Expiry of a fixed term (D)Completion of the specific ventureDeath of a partner (A)Insolvency of a partner (B)Illegality of business (C) falls under Compulsory Dissolution (Section 41), rather than standard contingent dissolution. Hence, the specific matches are (A), (B), and (D).