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Partnership Termination Agreement for Nigeria

Partnership Termination Agreement Template for Nigeria

A comprehensive legal document governed by Nigerian law, specifically designed to formally dissolve a business partnership and outline the terms and conditions of the termination. This agreement addresses key aspects including asset distribution, liability settlement, ongoing obligations, and mutual releases between partners. It ensures compliance with Nigerian partnership laws, including the Partnership Act and CAMA 2020, while providing a clear framework for winding up the partnership's affairs and protecting all parties' interests during the dissolution process.

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Partnership Termination Agreement

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What is a Partnership Termination Agreement?

The Partnership Termination Agreement is a crucial legal instrument used when business partners decide to end their professional relationship and dissolve their partnership in Nigeria. This document becomes necessary when partners mutually agree to terminate their business relationship, when a partner wishes to exit, or when circumstances necessitate the partnership's dissolution. It must comply with Nigerian legislation, particularly the Partnership Act and CAMA 2020, and should address all aspects of the dissolution process, including asset division, liability settlement, client transition, and ongoing obligations. The agreement serves as a comprehensive record of the termination terms, helping prevent future disputes and ensuring a smooth transition for all parties involved. It's particularly important in the Nigerian business context where formal documentation of business dissolutions is essential for legal and regulatory compliance.

What sections should be included in a Partnership Termination Agreement?

1. Parties: Identification of all partners involved in the termination agreement

2. Background: Brief history of the partnership and context for termination

3. Definitions: Key terms used throughout the agreement

4. Effective Date of Termination: Specific date when the partnership will officially end

5. Dissolution Process: Steps to be taken to wind up the partnership

6. Asset Distribution: Agreement on how partnership assets will be divided

7. Settlement of Liabilities: Process for handling outstanding debts and obligations

8. Final Accounts: Preparation and approval of final partnership accounts

9. Release and Discharge: Mutual release of partners from future claims

10. Confidentiality: Ongoing obligations regarding partnership information

11. Governing Law: Confirmation of Nigerian law as governing law

12. Dispute Resolution: Process for resolving any disputes arising from termination

13. Execution: Signature blocks and execution requirements

What sections are optional to include in a Partnership Termination Agreement?

1. Ongoing Projects: Used when there are incomplete projects that need to be addressed

2. Intellectual Property Rights: Required when the partnership owns or uses intellectual property

3. Employee Matters: Needed if the partnership has employees who need to be addressed

4. Client Transition: Include when there are ongoing client relationships to be managed

5. Non-Compete Provisions: Optional restrictions on partners' future business activities

6. Tax Matters: Detailed tax arrangements if complex tax issues exist

7. Insurance and Indemnification: Special provisions for ongoing insurance or indemnification needs

8. Bank Accounts and Financial Matters: Detailed provisions for handling financial accounts if complex

What schedules should be included in a Partnership Termination Agreement?

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

2. Schedule 2 - Liabilities List: Comprehensive list of all partnership liabilities and responsible parties

3. Schedule 3 - Client List: List of clients and agreed allocation or handling

4. Schedule 4 - Outstanding Projects: Details of ongoing projects and their handling

5. Schedule 5 - Financial Statements: Final balance sheet and profit/loss statements

6. Appendix A - Partner Contributions: Historical record of partner contributions and current capital accounts

7. Appendix B - Distribution Plan: Detailed plan for distribution of assets and responsibilities

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 | Serial Founder & Legal AI Author

Jurisdiction

Nigeria

Cost

Free to use
Relevant legal definitions






























Clauses






























Relevant Industries

Professional Services

Retail

Manufacturing

Construction

Real Estate

Technology

Healthcare

Consulting

Agriculture

Financial Services

Legal Services

Hospitality

Trading

Transportation

Energy

Relevant Teams

Legal

Finance

Compliance

Corporate Secretarial

Risk Management

Operations

Business Development

Administrative

Executive Leadership

Relevant Roles

Managing Partner

Business Owner

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Business Development Manager

Finance Director

Operations Manager

Company Secretary

Compliance Officer

Risk Manager

Partnership Manager

Business Administrator

Account Manager

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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