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Limited Partnership Purchase Agreement Template for Canada

A Limited Partnership Purchase Agreement under Canadian law is a comprehensive legal document that governs the sale and transfer of limited partnership interests from one party to another. This agreement is structured to comply with both federal Canadian laws and applicable provincial partnership legislation, particularly important as limited partnerships are primarily regulated at the provincial level. The document details the terms and conditions of the transfer, including purchase price, representations and warranties, conditions precedent, closing mechanics, and post-closing obligations, while ensuring compliance with securities regulations if applicable.

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What is a Limited Partnership Purchase Agreement?

The Limited Partnership Purchase Agreement is a crucial document used in Canadian business transactions when transferring ownership interests in a limited partnership. This agreement is essential when a limited partner wishes to sell their partnership interest to a new investor or existing partner. The document must comply with both federal Canadian laws and provincial partnership regulations, as limited partnerships are primarily governed at the provincial level. It typically includes detailed provisions covering the purchase price, payment terms, representations and warranties, conditions to closing, and various regulatory compliance requirements. The agreement is particularly important as it must address the unique aspects of limited partnership interests, including transfer restrictions, regulatory approvals, and the maintenance of limited liability status. The document also needs to consider tax implications, securities laws if applicable, and any specific industry regulations that may affect the transfer.

What sections should be included in a Limited Partnership Purchase Agreement?

1. Parties: Identification of the seller(s) and purchaser(s) of the limited partnership interests

2. Background: Context of the transaction, including description of the limited partnership and interests being sold

3. Definitions: Defined terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including partnership interests being sold and purchase price

5. Purchase Price and Payment: Details of consideration, payment method, and timing

6. Closing: Closing date, conditions precedent, and closing deliverables

7. Representations and Warranties of Seller: Seller's statements regarding ownership, authority, and partnership interests

8. Representations and Warranties of Purchaser: Purchaser's statements regarding authority, capacity, and compliance

9. Covenants: Pre-closing and post-closing obligations of the parties

10. Indemnification: Provisions for compensating parties for breaches or losses

11. General Partnership Matters: Partnership governance and operational provisions post-transaction

12. Confidentiality: Protection of confidential information

13. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

What sections are optional to include in a Limited Partnership Purchase Agreement?

1. Regulatory Approvals: Required when the transaction needs specific regulatory clearances

2. Tax Matters: Detailed tax provisions when significant tax implications exist

3. Employee Matters: Required when the partnership has employees affected by the transaction

4. Financing Contingency: Include when purchase is contingent on purchaser obtaining financing

5. Non-Competition: Required when seller needs to be restricted from competing

6. Transition Services: Include when seller will provide post-closing operational support

7. Environmental Matters: Required when partnership owns or operates facilities with environmental concerns

8. Intellectual Property: Include when partnership has significant IP assets

What schedules should be included in a Limited Partnership Purchase Agreement?

1. Schedule A - Partnership Interests: Detailed description of partnership interests being transferred

2. Schedule B - Purchase Price Allocation: Breakdown of purchase price allocation across assets/interests

3. Schedule C - Partnership Assets: Inventory of partnership's material assets

4. Schedule D - Material Contracts: List of partnership's significant contracts and agreements

5. Schedule E - Required Consents: List of third-party consents needed for transaction

6. Schedule F - Permitted Encumbrances: List of accepted liens or encumbrances on partnership assets

7. Schedule G - Disclosure Schedule: Exceptions to representations and warranties

8. Appendix 1 - Form of Transfer Power: Form document for transferring partnership interests

9. Appendix 2 - Closing Certificate Forms: Templates for closing certificates

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Canada

Cost

Free to use

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