A firm may be dissolved in any of the following modes
Modes Of
Dissolution
A firm
may be dissolved in any of the following modes
By Agreement (Sec. 40)
By Notice (Sec. 43)
On The Happening Of Certain Contingencies (Sec. 42)
1. Expiry of fixed term
2. Completion of adventure or undertaking
3. Death of a partner
4. Insolvency of a partner
Compulsory (Sec 41):
A
firm is dissolved in the following circumstances:
1. Insolvency
of all partners or all except one
2. Business
becoming unlawful
Dissolution By The Court (Sec 44):
Section
44 provides that the dissolution of a firm may take place on a suit filed
by a partner on any of the following grounds, namely:1. Insanity
of a partner [Section 44(a)]2. Permanent
incapacity [Section 44(b)]3. Misconduct
[Section 44(c)]4. Persistent
breach of agreement [Section 44(d)]5. Transfer
of interest [Sec.44 (e)]6. Continuous
losses[Section 44(f)]7. Just
and equitable causes [Sec.44(g)]
Tags : Business Environment and Law-Performance And Discharge Of Contracts
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