1.

Write the Circumstances under which a Firm is Dissolved.

Answer»

Circumstances for Dissolution of a Firm : 

(i) Compulsory Dissolution (Sec.41): A Firm is Compulsory Dissolved in the following cases 

(a) When All or But One Partner of the Firm becomes Insolvent . 

(b) When Business of the Firm Becomes Unlawful . 

(ii) Happening of an Event (Sec. 42): A Firm may be Dissolved on the Happening of Any ONE of the following Incidents : 

(a) On the Insolvency of a Partner. 

(b) On the Fulfilment of the Object for which the Firm was Formed. 

(c) On the Expiry of the Period for which the Firm was Formed . 



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