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Is the agreement in the partnership deed legally binding in terms of the partnership having to buy the share of an outgoing partner?

Is the agreement in the partnership deed legally binding in terms of the partnership having to buy the share of an outgoing partner?

1 December 2011

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Answer:
 
The partnership agreement is effectively the contract under which a partner provides services to the partnership, and its terms are therefore as legally binding as any other contract, including those provisions regarding capital payments to outgoing partners.

Answer:
 
The partnership agreement is effectively the contract under which a partner provides services to the partnership, and its terms are therefore as legally binding as any other contract, including those provisions regarding capital payments to outgoing partners.

Answer:
 
The partnership agreement is effectively the contract under which a partner provides services to the partnership, and its terms are therefore as legally binding as any other contract, including those provisions regarding capital payments to outgoing partners.

In many cases, a partner will have made a significant capital investment in the business, and therefore most partnership agreements will include terms that entitle an outgoing partner to be paid an amount representing his or her share in the business upon leaving the firm.

 

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