Partnership Dissolution Agreement Template

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© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.
PARTNERSHIP DISSOLUTION AGREEMENT
This Partnership Dissolution Agreement (the "Agreement") is made and effective this [DATE],
BETWEEN:
[SELLING PARTNER NAME] (the "Selling Partner"), a corporation organized
and existing under the laws of the [STATE/PROVINCE], with its head office
located at:
AND:
[PURCHASING PARTNER NAME] (the "Purchasing Partner"), a corporation
organized and existing under the laws of the [STATE/PROVINCE], with its head
office located at:
RECITALS
A. The parties are partners in the firm of [NAME], of [ADDRESS], [CITY], [STATE], established for
the purpose of [SPECIFY], under an agreement dated [DATE].
B. Pursuant to the terms of the partnership agreement, a buy or sell notice was given by Selling
Partner to Purchasing Partner.
C. The Purchasing Partner has exercised its option to purchase the interest of Selling Partner in and
to the partnership business.
In consideration of the matters described above, and of the mutual benefits and obligations set forth in
this agreement, the parties agree as follows:
1. SALE OF INTEREST; PURCHASE PRICE
Selling Partner shall sell its [%] interest in the partnership business, including its [%] interest in all of the
furniture, equipment, and furnishings of the business, stock of merchandise, accounts receivable,
moneys, and all of [SELLING PARTNER NAME’S] right, title, and interest in and to any and all of the
assets of the partnership, to Purchasing Partner for [AMOUNT], to be paid in [NUMBER] equal monthly
installments, due on the [SPECIFY] day of each month, commencing on [DATE].
2. ASSUMPTION OF OBLIGATIONS
The Purchasing Partner shall and do assume and agrees to pay all of the outstanding debts and
obligations of the partnership business and to perform all of the covenants of the leases on the premises,
and to perform all of the outstanding contracts and agreements required to be performed by the
partnership and agrees to save and hold harmless Selling Partner against any claim or claims that may
arise by reason of such debts, obligations, or covenants, or any other claims except those specifically
mentioned in this agreement.
Partnership Dissolution Agreement
Page 1 of 2
© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.
PARTNERSHIP DISSOLUTION AGREEMENT
This Partnership Dissolution Agreement (the "Agreement") is made and effective this [DATE],
BETWEEN:
[SELLING PARTNER NAME] (the "Selling Partner"), a corporation organized
and existing under the laws of the [STATE/PROVINCE], with its head office
located at:
AND:
[PURCHASING PARTNER NAME] (the "Purchasing Partner"), a corporation
organized and existing under the laws of the [STATE/PROVINCE], with its head
office located at:
RECITALS
A. The parties are partners in the firm of [NAME], of [ADDRESS], [CITY], [STATE], established for
the purpose of [SPECIFY], under an agreement dated [DATE].
B. Pursuant to the terms of the partnership agreement, a buy or sell notice was given by Selling
Partner to Purchasing Partner.
C. The Purchasing Partner has exercised its option to purchase the interest of Selling Partner in and
to the partnership business.
In consideration of the matters described above, and of the mutual benefits and obligations set forth in
this agreement, the parties agree as follows:
1. SALE OF INTEREST; PURCHASE PRICE
Selling Partner shall sell its [%] interest in the partnership business, including its [%] interest in all of the
furniture, equipment, and furnishings of the business, stock of merchandise, accounts receivable,
moneys, and all of [SELLING PARTNER NAME’S] right, title, and interest in and to any and all of the
assets of the partnership, to Purchasing Partner for [AMOUNT], to be paid in [NUMBER] equal monthly
installments, due on the [SPECIFY] day of each month, commencing on [DATE].
2. ASSUMPTION OF OBLIGATIONS
The Purchasing Partner shall and do assume and agrees to pay all of the outstanding debts and
obligations of the partnership business and to perform all of the covenants of the leases on the premises,
and to perform all of the outstanding contracts and agreements required to be performed by the
partnership and agrees to save and hold harmless Selling Partner against any claim or claims that may
arise by reason of such debts, obligations, or covenants, or any other claims except those specifically
mentioned in this agreement.
Partnership Dissolution Agreement
Page 1 of 2
© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States & Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY OTHER
PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL BE SUED IN A COURT OF LAW.
3. INDEMNIFICATION
The Selling Partner warrants and represents that it has incurred no debts, nor contracted any obligations,
nor incurred any liability in the name of the partnership or for which the partnership would be liable, other
than those debts, obligations, or liabilities as are disclosed in the partnership books of which Selling
Partner has advised the Purchasing Partner. The Selling Partner agrees to indemnify and save and hold
harmless the Purchasing Partner on account of any claims that may be made against the partnership
because of any debt, obligation, or liability which the Selling Partner incurred in the partnership name or
for which the partnership became liable on account of any of [SELLING PARTNER NAME’S] actions and
of which Selling Partner failed to inform the Purchasing Partner.
4. TAX RETURNS AND PAYMENTS
The Purchasing Partner agrees to prepare federal and state partnership income tax returns for the
partnership business from [DATE] to [DATE], and to supply Selling Partner with copies. Each of the
parties shall pay their individual income taxes, both federal and state, on the income received from such
partnership business.
5. ASSUMPTION OF TAX OBLIGATIONS
The general taxes and all other tax obligations shall be considered an obligation of the partnership and
are now assumed by the Purchasing Partner.
6. DISSOLUTION
The partnership existing between the parties under the name of [PARTNERSHIP NAME] is dissolved and
this agreement constitutes a full and complete accounting and liquidation of the partnership business.
Except as otherwise reserved in this agreement, Selling Partner acknowledges that it has no claim or
demand of any kind or nature against Purchasing Partner. Also except as otherwise reserved in this
agreement, Purchasing Partner acknowledges that it has no claim or demand of any kind against Selling
Partner.
7. GOVERNING LAW
This Agreement shall be construed and enforced in accordance with the laws of the State of
[STATE/PROVINCE OF GOVERNING LAW].
IN WITNESS WHEREOF, the parties hereto have executed this Partnership Dissolution Agreement as of
the date first above written.
SELLING PARTNER
PURCHASING PARTNER
Authorized Signature
Authorized Signature
Print Name and Title
Print Name and Title
Partnership Dissolution Agreement
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