Term
| Dissolution of a Firm in Partnership Act, 1932 |
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Definition
- ss. 39-55.
- s. 39 = dissolution of partnership between partners is 'dissolution of a firm.
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Term
| s. 40. Dissolution by agreement |
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Definition
- Two way of dissolution:
a. with the consent of all partners
b. in accordance with contract. |
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Term
| s. 41. Compulsory dissolution |
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Definition
- Two ways.
- One, when any partner is pronounced insolvent.
- Secondly, when any event makes it unlawful for the business of the firm to carry on in partnership.
Q. What happens when a firm carries on more than one adventures?
Answer: See, s. 41. |
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Term
| s. 42. Dissolution of Firm upon certain contingencies. |
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Definition
- 4 contingent situations when a firm dissolves
- by expiring of the term (time span) for that a firm has been constituted.
- by the completion of the adventure for which firm was constituted.
- by the death of a partner
- by declaring a partner as insolvent.
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Term
| s. 44. dissolution by the court |
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Definition
- on 7 situations, a court may dissolve a firm
- Partner's unsound mind; when any partner becomes incapable of performing his duties as partner; partner guilty of conduct; when partner commits breach of agreements; when partner transfer his/her interest in firm to 3rd parties; firm facing continuous loss and lastly, on any just/equitable ground that renders the firm to be dissolved.
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Term
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Definition
- The goodwill is included in the asset of the firm
- The goodwill may be sold separately or with other property of the firm.
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