Dissolution or firm means end of the firm.The partnership can be dissolved easily by mutual consent of the partners.Formal document is not required for this purpose .
Dissolution of Firm:
Dissolution of firm means the complete breakdown of the relation of partnership between all the partners .No further business will be done after dissolution.
Grounds of Dissolution:
Section 39 to 44 of the Partnership Act 1932 deals with ground of dissolution of Firm.
Dissolution by Agreement :
A firm may be dissolved with the consent of all partners .
Compulsory Dissolution:
The firm of partnership is compulsory dissolved and Jo question of any contract to the contrary between partners arise .
Unlawful Business :
A business of a firm would be said to be illegal and unlawful if it is forbidden by law.
Contingent Dissolution:
Subject to contract between the partners ,a firm is dissolve:
On the expiry of fixed period for which the firm was formed .
On completion of project.
On death of partners .
Dissolution by Court:
At the suit of partner, the Court may dissolve a firm on any of the following grounds :
Insanity
Permanent incapacity
Misconduct
Breach of agreement
Transfer of Interest
Continuous Loss
Just and Equitable cause
