Whenever you’re in business with others, there may come a time when you decide you want to cease all business operations.
And, depending on the legal structure of your business, there are different processes you’ll need to follow when ending things.
If you’re in a partnership, and want to end the partnership, you’ll need a contract. This is often called a Partnership Dissolution Agreement.
What Is A Partnership Dissolution Agreement?
A Partnership Dissolution Agreement is a document that sets out the terms by which partners agree to cease operations.
If your business structure is a partnership structure and you want to wind it down, it’s a good idea to have a Partnership Dissolution Agreement to ensure you’re legally protected through this process.
A Partnership Dissolution Agreement must be signed by both parties.
Why Do I Need A Partnership Dissolution Agreement?
Regardless of whether your partnership is ending harmoniously or is coming to an end due to conflict between partners, a Partnership Dissolution Agreement is an important document to terminate the partnership business structure.
A Partnership Dissolution Agreement can ease uncertainty by clarifying when the partnership will end and what will happen with any assets or liabilities of the business.
Even if you don’t have an existing Partnership Agreement in place, this contract will make sure that you’ve covered all areas of the partnership, so that all terms are clear in the event that you and your business partners dissolve the partnership.
What Is Included In A Partnership Dissolution Agreement?
Details that might be addressed in a Partnership Dissolution Agreement include:
- How your business will be conducted until the date your partnership is dissolved
- Purchase price
- Release from liability
- Mutual liability releases
Even if your partnership is ending on good terms, it can still be a stressful process. And you want to make sure you’re covering all bases when closing shop.
Our lawyers have extensive experience in drafting Partnership Dissolution Agreements. Don’t hesitate to reach out and contact us to find out if this agreement fits your circumstances.
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