Which of the following does not lead to the dissolution of a partnership?

Explanation

A partnership is a type of business structure where two or more individuals come together to run a business and share the profits and losses. Dissolution refers to the ending or termination of a partnership.

Let's look at the options:

Option A: absence of a deed of partnership (Correct)

A deed of partnership is a legal document that outlines the terms and conditions of the partnership. While it is important to have a deed of partnership to establish the partnership, the absence of a deed does not automatically lead to the dissolution of the partnership. However, it is always recommended to have a written agreement to avoid misunderstandings.

Option B: withdrawal of a partner

If a partner decides to leave the partnership, it can lead to the dissolution of the partnership. When a partner withdraws, the remaining partners may need to reevaluate the partnership and decide whether to continue or dissolve it.

Option C: incapacity of any of the partners

If one of the partners becomes unable to contribute to the partnership due to incapacity, it can lead to the dissolution of the partnership. Incapacity refers to a partner being unable to fulfill their duties and responsibilities.

Option D: completion of contractual term

If the partnership agreement specifies a fixed term or duration, the partnership may dissolve when that term is completed. This means that the partners have agreed to run the business together for a specific period of time, and once that time is up, the partnership is dissolved.

Based on the options given, the correct answer is Option A: absence of a deed of partnership. While it is important to have a deed of partnership, the absence of one does not automatically lead to the dissolution of the partnership.

Remember, it is always important to consult legal professionals and refer to the relevant laws and regulations when dealing with partnership agreements and dissolution.