Question

Assertion (A): Death of partner means partnership comes to an end and new partnership comes into effect.

Reason (R): Death of a partner normally results in reconstitution of the partnership and the firm continues.

In the context of the above two statements, which option is correct?

Options

• Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).

• Assertion (A) and Reason (R) are correct, but Reason (R) is not the correct explanation of Assertion (A).

• Assertion (A) is correct, but Reason (R) is not correct.

• Assertion (A) is not correct, but Reason (R) is correct.

Answer 1

Assertion (A) and Reason (R) are correct, and Reason (R) is the correct explanation of Assertion (A).

Explanation:

Both statements are correct. On the death of a partner, the original partnership agreement ends, and a new arrangement is formed; normally, the firm is reconstituted with the surviving partners, so the business continues. However, the Reason (R) (that the firm is normally reconstituted and continues) does not directly explain why the old partnership comes to an end (A); it describes the usual outcome rather than explaining the legal fact that the original partnership agreement terminates on death.