Which of the following will lead to dissolution of partnership firm by agreement?

Dissolution of a partnership firm can occur through different modes. When specifically considering dissolution by agreement, it refers to a voluntary decision made by the partners.

Let's examine each option:

Option 1 - Admission of a partner: This results in reconstitution of the partnership, not dissolution of the firm. The partnership continues with modified partnership structure.

Option 2 - With the consent of all the partners: Under Section 40 of the Indian Partnership Act, 1932, a partnership firm can be dissolved with the mutual consent of all partners. This is a voluntary dissolution where partners unanimously agree to end the partnership. This represents dissolution by agreement.

Option 3 - Death of a partner: This causes reconstitution of the partnership (dissolution of partnership between existing partners), but not necessarily dissolution of the firm. The firm can continue with remaining partners unless there are only two partners or the partnership deed specifies otherwise.

Option 4 - Expiry of the period of partnership: This falls under dissolution by operation of law (compulsory dissolution). When a partnership formed for a fixed term expires, the firm dissolves automatically without requiring any agreement.

The key distinction is between voluntary dissolution (by agreement) and automatic dissolution (by law). Dissolution by agreement specifically requires mutual consent of all partners, making it a deliberate and consensual decision rather than an automatic consequence of an event.