Question

Which of the following are grounds for compulsory dissolution of the firm by court?

• A. Insanity of a partner
• B. Misconduct of a partner
• C. Perpetual losses in business
• D. All of these

Answer 1

The correct option is A Insanity of a partner

Insanity of a partner is one of the grounds for compulsory dissolution of the firm by court. Dissolution of partnership implies not only a complete closure or termination of partnership business but it also includes any change in the existing agreement among the partners due to a change in the number of partners.