Question

Explain dissolution of a firm by (i) Agreement and (ii) Notice

Answer 1

(i) Dissolution by Agreement:

It means that the firm is dissolved due to a mutual agreement between the partners. A firm may be dissolved if all the partners agree on it or if there is a clause for the dissolution in the partnership agreement drafted by the partners.

(ii) Dissolution by Notice:

A partnership at will can be dissolved when a partner gives a notice,in writing, to all the other partners about his/her intentions about dissolution of the firm.