Question

According to which section of the Partnership Act 1932, the dissolution of a partnership between all the partners of a firm is called the dissolution of the firm?

• A. Section 32
• B. Section 35
• C. Section 37
• D. Section 39

Hint:

Remember: Section 39 = Dissolution of firm, Section 32 = Retirement, Section 35 = Insolvency, Section 37 = Outgoing partner's rights.

Answer 1

The Correct Option is D

Step 1: Define Dissolution.
Dissolution signifies the total termination of a partnership firm, involving the cessation of business operations and the settlement of all financial matters.

Step 2: Relevant Legal Sections.
- Section 32 covers partner retirement.
- Section 35 addresses partner insolvency.
- Section 37 outlines the rights of an outgoing partner in specific circumstances.
- Section 39 provides the definition of firm dissolution, marking the end of the partnership agreement among all partners.

Step 3: Summary.
Consequently, the dissolution of a partnership firm is defined under Section 39 of the Partnership Act, 1932.

Final Answer: [\boxed{\text{Section 39}}]