Question

Examine the grounds under which the court may order for dissolution of the firm.

Answer 1

THE GROUNDS ON WHICH THE COURT MAY ORDER FOR DISSOLUTION OF THE FIRM ARE :-

insolvency of partners , illegal business , insanity of a partner , misconduct by the partner , regular losses , breach of agreement , transfer of share , incapacity of a partner , disputes among partners .

Explanation:

THE GROUNDS ON WHICH THE COURT MAY ORDER FOR DISSOLUTION OF THE FIRM ARE AS FOLLOWS :-

• ILLEGAL BUSINESS - if government prohibits the firms from running the industry , the trading becomes unlawful.
• DISPUTES AMONG THE PARTNERS - When there is regular quarrel among the partners on the basis of their partnership issues it becomes necessary to dissolve the firm .
• REGULAR LOSSES - the essence of partnership is sharing and making profits , if the reason for the business goes off with regular losses , then it is better to be dissolved .