Document background
The Sale of Partnership Agreement is a crucial document used when one or more partners wish to sell their interest in a Malaysian partnership to either existing partners or new buyers. This agreement is essential for businesses operating under Malaysian law and must comply with the Partnership Act 1961, Contracts Act 1950, and other relevant legislation. It typically becomes necessary during partnership restructuring, retirement of partners, or strategic business realignment. The document comprehensively covers the sale terms, valuation of partnership interests, transfer procedures, warranties, and post-sale arrangements. It protects both sellers' and buyers' interests while ensuring business continuity and legal compliance. The agreement should be carefully drafted to address specific partnership circumstances, including treatment of existing liabilities, ongoing contracts, and employee relationships.
