Section 42 of IPA : Section 42: Dissolution On The Happening Of Certain Contingencies

Explanation using Example

Imagine a scenario where three friends, Aarav, Bhavna, and Chirag, form a partnership to open a seasonal ice-cream shop for a period of six months. Their partnership agreement explicitly states that the firm is constituted for this fixed term only. As per Section 42(a) of the Indian Partnership Act, 1932, once the six-month period concludes, the firm will be automatically dissolved without any further action needed from the partners. This is an example of a partnership dissolving by the expiry of the term it was constituted for.