Question 8 of 53beginner💡 UnderstandTrue / False1 mark

Dissolution of partnership can not take place without intervention of the court.

Correct Answer

False

Exercise: Test your Understanding – I | Q: 8 | (Page 3)
For More Understanding

Explanation

The statement is incorrect. As per the NCERT textbook, dissolution of partnership can take place without court intervention. The context clearly states that dissolution of partnership may occur through various ways such as: (1) Change in existing profit sharing ratio among partners, (2) Admission of a new partner, (3) Retirement of a partner, (4) Death of a partner, (5) Insolvency of a partner, (6) Completion of the venture, and (7) Expiry of the period of partnership. Additionally, dissolution by agreement (with consent of all partners or as per contract) and dissolution by notice (in case of partnership at will) also take place without court intervention. Court intervention is only one of the methods of dissolution, not a mandatory requirement.

Solution Steps

  1. Step 1: Read the statement - 'Dissolution of partnership can not take place without intervention of the court.'

  2. Step 2: Refer to the context which lists multiple ways dissolution can occur without court intervention.

  3. Step 3: Identify that dissolution can happen through change in profit sharing ratio, admission, retirement, death, insolvency, completion of venture, expiry of period, by agreement, or by notice.

  4. Step 4: Conclude that the statement is False since court intervention is not mandatory for dissolution of partnership.

PreviousNext