The term dissolution means coming to an end or discontinuation. The dissolution of the firm implies a complete breakdown of the partnership relation among all the partners.<\/p>\n\n\n\n
The dissolution of a partnership among all partners of a firm is called the dissolution of the firm. (ii) Compulsory dissolution<\/span><\/strong>: A firm is dissolved compulsorily in the following cases<\/p>\n\n\n\n (iii) Dissolution by Notice<\/span>:<\/strong> In case of a partnership at will, the firm may be dissolved if any one of the partners gives a notice in writing to the other partners.<\/p>\n\n\n\n (iv) Dissolution by Court<\/span><\/strong>: A court may order a partnership firm to be dissolved in the following cases: Dissolution of Partnership firm Class 12 New Syllabus (Videos)
(i) Dissolution by Agreement<\/span><\/strong>: A firm is dissolved in case<\/p>\n\n\n\n\n
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(a) When a partner becomes of unsound mind
(b) When a partner becomes permanently incapable of performing his\/her duties as a partner.
(c) When a partner deliberately and consistently commits a breach of agreements relating to the management of the firm.
(d) When a partner\u2019s conduct is likely to affect the business of the firm adversely.<\/p>\n\n\n\n
<\/strong>Part 1
<\/a>Part 2<\/a><\/p>\n\n\n\n