How To Dissolve A Partnership Firm

Partners may do so. Take help from any lawyer in Vkeel.com

The easiest and the most hassle-free method to dissolve a partnership firm is by mutual consent or an agreement. A partnership firm may be discontinued with the approval of all the partners or by a contract between the partners. A partnership is formed by a contract and may be terminated using a contract itself.

partnership firm may be discontinued or dissolved in any of the following ways. Dissolution by Agreement The easiest and the most hassle-free method to dissolve a partnership firm is by mutual consent or an agreement. A partnership firm may be discontinued with the approval of all the partners or by a contract between the partners. A partnership is formed by a contract and may be terminated using a contract itself. It is essential for all the partners of the partnership firm to agree mutually for dissolving a partnership as stated in the Dissolution of Partnership Firm by Mutual Consent clause in the partnership agreement. Dissolution by Notice Where a partnership is at will, the partnership firm may be dissolved by a partner of the firm by sending out a notice in writing to all the other partners of his/ her intention to dissolve the partnership firm. A note of dissolution once given cannot be withdrawn without the consent of all the other partners. Any individual partner may initiate such dissolution after proper notice is issued. Dissolution due to contingencies Subject to a contract between the partners of a partnership firm, a firm may be dissolved under certain clauses/ situations: By the expiry or end of a partnership period. Some partnership forms are started with a specific view of the tenure for which the partnership shall exist. These kinds of businesses will come to an end naturally once the period of the partnership is complete.If the partnership firm is constituted to carry out one or more endeavours or undertakings and may be dissolved on completion, in other words, a partnership firm may be dissolved on account of the end of a project which the firm was initially formed to undertake.By the death of a partner in the firm.By the adjudication of a partner or more than one partner as an insolvent.Compulsory Dissolution At times, due to certain occurrences, a partnership firm may be forced to dissolve making it difficult for the firm to continue its initially decided tenure. A partnership firm may be compulsorily dissolved: When all the partners of the firm, or all the partners except one, are adjudged insolvent;When some occurrence has happened which makes it illegal for the business of the firm to be carried on.Dissolution by Court A partnership firm carried out its business by involving and working with various individuals at a given time. Regardless of being friends or relatives, there are situations when one or more partner may fi