Question

A, B and C constituted a partnership to carry out a venture to build offices for Zakash Office Sites Ltd. On the completion of venture under which way the dissolution of a firm will takes place?

• A. On the happening of certain contingencies
• B. Dissolution by Court
• C. Dissolution by Notice
• D. Compulsory Dissolution

Hint:

A firm formed for one venture ends when the venture is complete. This is a contingency under Section 42.

Answer 1

The Correct Option is A

Step 1: Classify the type of firm
There are two kinds of partnership: a partnership at will and a partnership for a fixed term or venture. Here the firm has a definite purpose, so it is a fixed venture firm.

Step 2: Link the type to a dissolution mode
A fixed venture firm ends by itself once the term expires or the work is over. The law puts this under dissolution on the happening of certain contingencies.

Step 3: Rule out the rest
Court dissolution needs a court order and a ground. Notice dissolution is only for a firm at will. Compulsory dissolution is for insolvency of all partners or an unlawful business.

Step 4: Conclusion
The firm needs none of these, so the mode is the happening of a contingency, which is option 1.

Final Answer:
Option 1 is correct. \[ \boxed{\text{Option 1}} \]