Subject to contract, a firm for a fixed term is dissolved by what?
ADeath of a creditor
BExpiry of that term
CPartner's marriage
DChange of premises
Answer & Solution
Correct answer: B. Expiry of that term
Section 42(a) dissolves a fixed-term firm automatically when its term runs out.
Keep practising Partnership
Browse all Partnership questions for CA Foundation, or explore more Businesslaw topics.
Related questions
A fixed-term firm carrying on after expiry takes the incidents of what?While settling accounts after dissolution, goodwill is treated as what?A partner rescinding for fraud ranks as what regarding debt payments he made?No premium refund follows when dissolution is mainly due to what?After dissolution, a partner's authority continues for what purpose?Which is repaid first among partners after outside debts?Settling accounts after dissolution, firm assets first pay what?Public notice of a registered firm's dissolution includes which publication?