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 ventures, by the completion thereof.(C) By the death of a partner.(D) By the adjudication of a partner as an insolvent. Choose the correct answer from the options given below:
- A(A), (B) and (C) only
- B(A), (B) and (D) only
- C(A), (B), (C) and (D)
- D(B), (C) and (D) only
Solution & Step-by-step Explanation
Section 42 of the Indian Partnership Act, 1932 states that subject to a contract to the contrary, a firm is dissolved upon the happening of specific contingencies, which explicitly include:Expiry of the fixed term (A)Completion of the specific venture/undertaking (B)Death of any partner (C)Insolvency/adjudication of a partner (D)Therefore, all four events fall under legal contingent dissolution conditions.