Dissolving a partnership firm means discontinuing the business under the name of said partnership firm. In this case, all liabilities are finally settled by selling off assets or transferring them to a particular partner, settling all accounts existed with the partnership firm.
Although the liabilities of the partners cease to exist once the firm is dissolved, the partners are liable for any act prior to the dissolution of the firm. Only partners who are incapacitated as insolvent or dead are exempt from the liability.
1) Dissolution by Mutual Agreement
2) Dissolution by Notice
3) Insolvency of Partners
4) Commitment to Illegal Business
5) Death of a Partner
6) Expiry of Term
7) Completion of Work or Contract
8) Resignation of Partner