Free Sample Partnership Termination Form
Partnership Terminations are used when one or more partners decide to end the relationship. This agreement sets out who will share in the partnership assets or liabilities and the effective termination date. It is important that a partnership be terminated as amicably as possible.
Disclaimer:This was not drafted by an attorney & should not be used as a legal document.
THIS AGREEMENT made as of Effective Date of Agreement between ___________________, located at, ______________________ ("Partner 1 ") and _____________________, located at __________________("Partner 2").
WHEREAS the parties hereto (the "Partners") entered into a partnership with one another on Date of Establishment of Partnership (the "Partnership") to carry on the business of Brief Description of Nature of Partnership Business (i.e., a Pizza Restaurant) from premises at Premises of Partnership under the name Partnership Name;
WHEREAS the Partners now wish to terminate the Partnership;
NOW THEREFORE INCONSIDERATION of the mutual covenants and agreements herein contained and subject to the terms and conditions hereafter set out, the parties hereto agree as follows:
1. The Partners agree to terminate the Partnership effective (the "Termination Date").
2. Effective the Termination Date, all of the assets of the Partnership will be distributed to the Partners pro rata in accordance with their respective interests in the Partnership, and all of the liabilities of the Partnership, will be assumed by the Partners pro rata in the same proportion.
3. Each Partner hereby indenmifies and saves harmless the other Partner from and against any claims, demands, actions, losses and damages suffered by such Partners resulting from the failure of the Partner to pay.
4. The Partners hereby release and forever discharge one another from any and all claims, demands, actions, losses and damages whatsoever arising from or relating to the Partnership.
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the day and
year first above written.
Partner 1 Partner 2