Partnership Dissolution Agreement (for general partnerships)

Contents

1. Dissolution Date
2. Liquidating Partner
3. Power of Attorney to Liquidating Partner
4. Custodian of Partnership Books
5. Indemnification
6. Distribution
7. Release
8. Further Assurances
9. Arbitration
10. Controlling Law
11. Successors and Assigns
12. Counterparts

How to Use

(1) Fill in the blanks.
(2) Remove the yellow highlighted brackets.
(3) Review the agreement carefully to make sure that it conforms to the agreement of the parties.
(4) Sign and date the agreement.

FAQs

What is a liquidating partner?
The liquidating partner is one of the partners in the partnership who is designated to have responsibility for closing down the partnership, including handling things like collecting outstanding debt, selling remaining inventory, preparing tax and state filings, notifying suppliers and customers, and distributing the remaining assets and liabilities among the partners.

Can the liquidating partner be compensated?
Yes, the liquidating partner can be compensated for services rendered in winding up the business of the partnership.

What happens if the partnership does not have enough money to pay its creditors?
If there are any debts to outside creditors that remain unpaid, the partners must pay them from their own funds.