Dissolution without the intervention of Court:-

1. By Agreement (S.40)
A partnership firm can be dissolved any time with the consent of all the partners whether
the partnership is at will or for a fixed duration. A partnership can be dissolved in
accordance with the terms of the Partnership Deed or of the separate agreement.

2. Compulsory Dissolution (Sec.41):- In case, any of the following events take place then
it becomes compulsory for the firm to dissolute:
(i) Insolvency of Partners

In case all the partners or all the partners except one become insolvent.

(ii) Unlawful Business

In case the firm is engaged in more than one business which may have become
unlawful, the better view appears to be that the firm will not dissolve as to the other
legitimate businesses unless all of them are so inter connected that stoppage of one
would paralyze the others e.g. A and B charter a ship to go to foreign port and receive a
cargo on the joint venture. War breaks out between England and the country where the
port is situated before the ship arrives at the port, and continues until after the time
appointed for loading. The partnership between A and B is dissolved

3. Dissolution on the happening of contingent event (S.42) A firm may be

dissolved on the happening of any of the following contingent event
(i) Expiry of Fixed Period
A firm constituted for a term is of course not exempt from dissolution by any of the other
possible cause before the expiration of the term. The contract may expressly provide
that the partnership will determine in certain circumstances but even if there is no such
express term, an implied term as to when the partnership will determine may be
gathered from the contract and the nature of the business. The provision of this section
make it clear that unless some contract between the partners to the contrary is proved,
the firm, if constituted for a fixed term would be dissolved by the expiry of that term.