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: Understanding dissolution.
Dissolution means the complete closure of a partnership firm, where business is discontinued and accounts are settled.

Step 2: Section of law.
- Section 32 → Retirement of a partner.
- Section 35 → Insolvency of a partner.
- Section 37 → Right of outgoing partner in certain cases.
- Section 39 → Defines dissolution of a firm (where partnership between all partners comes to an end).

Step 3: Conclusion.
Thus, dissolution of the firm is defined under **Section 39** of the Partnership Act, 1932.

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