The correct answer is D. Only 4.
A court can order the dissolution of a firm if a partner transfers his interest or share to a third party. This is because the transfer of a partner’s interest or share to a third party can fundamentally alter the nature of the firm. For example, if a partner transfers his or her entire interest to a third party, the new partner will have the same rights and responsibilities as the original partner. This can lead to conflict and disagreement among the partners, and it can also make it difficult for the firm to operate effectively.
The other options are not grounds for dissolution of a firm. A partner who is of sound mind and does not suffer from permanent incapacity is still able to participate in the firm’s business. A partner who is not guilty of misconduct of the business is still able to contribute to the firm’s success. Therefore, the court would not order the dissolution of a firm based on these factors.
In conclusion, the court has the option to order dissolution of a firm if a partner transfers his interest or share to a third party. This is because the transfer of a partner’s interest or share to a third party can fundamentally alter the nature of the firm. The other options are not grounds for dissolution of a firm.