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Partnership Termination Agreement Template for United Arab Emirates

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Key Requirements PROMPT example:

Partnership Termination Agreement

"I need a Partnership Termination Agreement for dissolving a two-partner architectural firm in Dubai by March 2025, with one partner retiring and transferring their existing clients to the remaining partner who will continue the practice under a new name."

Document background
The Partnership Termination Agreement is a crucial document used when business partners decide to end their business relationship in the United Arab Emirates. It serves as the formal instrument for dissolving partnerships under UAE Commercial Companies Law (Federal Law No. 2 of 2015) and related regulations. This document is essential when partners wish to terminate their business relationship due to various reasons such as retirement, disagreement, or strategic reorganization. It comprehensively addresses the division of assets, settlement of liabilities, treatment of ongoing contracts, and future obligations of all parties involved. The agreement must comply with specific UAE legal requirements, including proper registration with relevant authorities and adherence to local commercial regulations. It typically includes provisions for financial settlements, confidentiality obligations, non-compete restrictions, and dispute resolution mechanisms appropriate for UAE jurisdiction.
Suggested Sections

1. Parties: Identification of all partners involved in the termination, including full legal names, addresses, and registration details

2. Background: Brief history of the partnership, reference to original partnership agreement, and reason for termination

3. Definitions: Definitions of key terms used throughout the agreement

4. Effective Date of Termination: Clear specification of when the partnership will be officially terminated

5. Settlement of Accounts: Details of final accounting, including profit/loss distribution and capital account settlements

6. Asset Distribution: Specification of how partnership assets will be divided or liquidated

7. Liabilities and Obligations: Allocation of existing liabilities and ongoing obligations

8. Client and Contract Arrangements: Treatment of existing clients, contracts, and business relationships

9. Confidentiality: Ongoing obligations regarding confidential information

10. Non-Compete and Non-Solicitation: Restrictions on future business activities and client/employee solicitation

11. Release and Discharge: Mutual release of claims between partners

12. Governing Law and Jurisdiction: Specification of UAE law as governing law and relevant jurisdiction

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Ongoing Projects: Used when there are incomplete projects that need to be addressed, including completion responsibility and profit sharing

2. Intellectual Property Rights: Include when the partnership owns or has developed IP that needs to be allocated

3. Employee Arrangements: Required when the partnership has employees whose future employment needs to be addressed

4. Tax Matters: Include when there are specific tax implications or obligations that need to be addressed

5. Dispute Resolution: Optional detailed dispute resolution mechanism beyond standard jurisdiction clause

6. Insurance and Indemnification: Include when there are ongoing insurance policies or specific indemnification requirements

7. Notice Requirements: Include when specific notice procedures for various actions are needed

8. Brand and Trade Name Usage: Include when the partnership name or brand will continue to be used by one party

Suggested Schedules

1. Schedule 1 - Asset Inventory: Detailed list of all partnership assets and their agreed distribution

2. Schedule 2 - Financial Statement: Final balance sheet and profit/loss statement of the partnership

3. Schedule 3 - Client List: Complete list of clients and their allocation between partners

4. Schedule 4 - Outstanding Liabilities: List of all debts, obligations, and their allocation

5. Schedule 5 - Ongoing Contracts: List of all contracts and their treatment post-termination

6. Appendix A - Original Partnership Agreement: Copy of the original partnership agreement being terminated

7. Appendix B - Required Regulatory Forms: Copies of necessary forms for UAE authorities

8. Appendix C - Power of Attorney: If required for any post-termination actions

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































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Relevant Industries

Professional Services

Real Estate

Construction

Trading

Consulting

Healthcare

Technology

Retail

Manufacturing

Financial Services

Hospitality

Engineering

Architecture

Legal Services

Accounting Services

Relevant Teams

Legal

Finance

Corporate Governance

Compliance

Risk Management

Operations

Business Development

Commercial

Executive Leadership

Partnership Management

Relevant Roles

Managing Partner

CEO

CFO

Legal Counsel

Corporate Lawyer

Business Development Manager

Finance Director

Operations Manager

Commercial Director

Partnership Manager

Company Secretary

Compliance Officer

Risk Manager

Business Owner

Managing Director

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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