Q: Elaborate section 40 of partnership act, 1932 ?

Ans: Section 40 mentions that a firm can be dissolved either with the consent of all partners or pursuant to a contract between the partners. Dissolution by consent applies when the firm is for fixed period or at will. The consent may be implied. In case of dissolution by way of contract between the partners such contract express or may be contained in the partnership deed itself or in a separate agreement. When there is a prior agreement between the partners as to dissolution of the firm, the firm can be dissolved as per the agreement even if all the partners are not willing to dissolve the firm at the moment.

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