On death of a partner, in absence of any term to the contrary, a partnership firm is dissolved:

A firm consisting of only two partners cannot continue as a partnership after one partner dies, because only one person remains. Section 42(c) also provides the general rule that a partner's death dissolves the firm, subject to the partners' contract. Dissolution does not require a direction in the deceased's will or waiting until every original partner has died; a minor admitted only to benefits is not a partner.