Is the second partner obliged to pay 550,000 to the heirs, or do the heirs bear their share of the company's debts amounting to 400,000? And is the partnership dissolved upon the death of the first partner? And who bears its debts?

The company terminates upon the death of one of the partners. So, if a partner dies, the partnership is dissolved with respect to his share, and his portion remains for his heirs. The other partner is not allowed to dispose of the joint property except with the consent of the heirs. However, if the heirs wish the partnership to continue, there is no objection. As for dispute cases, they must be presented to the Sharia courts or discussed verbally with scholars by both parties of the lawsuit.