Match List-I with List-II:List-IList-II(A) Compulsory Dissolution(I) A partner persistently commits breach of partnership agreement.(B) Happening of contingencies(II) Death of a partner(C) Dissolution by Court(III) According to contract between the partners.(D) Dissolution by agreement(IV) Business becomes illegalChoose the correct answer from the options given below:
- A(A) - (IV), (B) - (I), (C) - (III), (D) - (II)
- B(A) - (II), (B) - (I), (C) - (IV), (D) - (III)
- C(A) - (IV), (B) - (II), (C) - (I), (D) - (III)
- D(A) - (III), (B) - (IV), (C) - (I), (D) - (II)
Solution & Step-by-step Explanation
Let's analyze the modes of dissolution as per the Indian Partnership Act, 1932:(A) Compulsory Dissolution (Sec 41): Happens automatically if the business of the firm becomes unlawful/illegal. (IV)(B) Happening of certain contingencies (Sec 42): Subject to a contract, a firm can be dissolved upon specific events such as the death of a partner. (II)(C) Dissolution by Court (Sec 44): The court can order dissolution if a partner persistently breaches the agreement. (I)(D) Dissolution by agreement (Sec 40): A firm may be dissolved at any time with the consent of all partners or in accordance with a contract previously made. (III)Matching order: (A) - (IV), (B) - (II), (C) - (I), (D) - (III).