This document is an agreement for the assignment of an interest in a partnership.
This agreement is designed to be used in the case where a partner sells his, her or its interest in a business. It will need to be agreed between the assignor and the assignee.
This agreement does not provide that the assignee becomes a partner, but simply that the assignee gains a right to a share in the profits of the business. For an agreement that contemplates the admission of a new partner, see the separate document “Agreement for admission of incoming partner”, and related partnership precedents, in the partnership suite of documents.
This deed provides that, on the date of the assignment, the assignor is released from obligations under the partnership agreement. However, in some instances, the assignor may have ongoing liability, such as tax obligations.
Practitioners may need to also consider whether there are any conditions document to this agreement, such as financing or the parties entering into other agreements.
This document has been authored for LexisNexis by Rosalyn Gladwin, Principal, Gladwin Legal.
This document is prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.