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Partnership Settlement Agreement Template for Nigeria

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Key Requirements PROMPT example:

Partnership Settlement Agreement

"I need a Partnership Settlement Agreement for dissolving a law firm partnership between three partners, with equal share distribution and standard non-compete provisions, to be effective from March 1, 2025."

Document background
The Partnership Settlement Agreement is a crucial legal document used when business partners in Nigeria decide to formally end their business relationship. It serves as a comprehensive record of the terms and conditions under which the partnership will be dissolved, incorporating requirements from Nigerian partnership laws, including the Partnership Act 1890 and the Companies and Allied Matters Act (CAMA) 2020. This document becomes necessary when partners agree to separate their business interests, whether due to retirement, strategic differences, or other circumstances. It covers essential aspects such as asset distribution, liability allocation, client transition, confidentiality obligations, and future restrictions. The agreement helps prevent future disputes by clearly documenting all settlement terms and ensuring all parties understand their rights and obligations under Nigerian law.
Suggested Sections

1. Parties: Identification and details of all partners involved in the settlement

2. Background: History of the partnership, reason for dissolution, and context of the settlement

3. Definitions and Interpretation: Definitions of key terms and interpretation rules for the agreement

4. Settlement Terms: Core terms of the settlement including financial arrangements and asset distribution

5. Release and Discharge: Mutual release of claims and liabilities between partners

6. Distribution of Partnership Assets: Detailed breakdown of how partnership assets will be divided

7. Financial Settlement: Specific financial terms, including any payments between partners

8. Outstanding Liabilities: Allocation of responsibility for partnership debts and liabilities

9. Confidentiality: Obligations regarding confidential information and trade secrets

10. Non-disparagement: Agreement not to make negative statements about other partners

11. Governing Law and Jurisdiction: Specification of Nigerian law as governing law and jurisdiction

12. Entire Agreement: Confirmation that this document represents the complete agreement

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Ongoing Projects: Terms for handling incomplete projects or contracts (include if there are ongoing business commitments)

2. Intellectual Property Rights: Division of IP rights and future usage terms (include if IP assets exist)

3. Non-Compete Provisions: Restrictions on future business activities (include if competitive concerns exist)

4. Employee Matters: Handling of employees and employment contracts (include if partnership has employees)

5. Client Transition: Process for transitioning clients (include if client relationships need to be divided)

6. Tax Provisions: Specific tax-related agreements (include if complex tax implications exist)

7. Dispute Resolution: Alternative dispute resolution procedures (include if specific dispute resolution mechanism desired)

8. Insurance Matters: Handling of insurance policies and claims (include if significant insurance matters exist)

Suggested Schedules

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

2. Schedule 2 - Distribution Schedule: Specific allocation of assets, including timing and method of transfer

3. Schedule 3 - Financial Statement: Current financial position of the partnership

4. Schedule 4 - Outstanding Liabilities: List of all debts, loans, and other liabilities

5. Schedule 5 - Client List: List of clients and agreed allocation between partners

6. Appendix A - Valuation Reports: Independent valuations of partnership assets

7. Appendix B - Tax Clearance: Tax clearance certificates and relevant tax documentation

8. Appendix C - Property Documents: Copies of property titles and transfer documents

Authors

Alex Denne

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

Relevant legal definitions






























Clauses































Relevant Industries

Professional Services

Retail

Manufacturing

Real Estate

Construction

Technology

Agriculture

Healthcare

Hospitality

Consulting

Legal Services

Accounting Services

Trading

Oil and Gas

Transportation

Education

Relevant Teams

Legal

Finance

Compliance

Corporate Secretariat

Risk Management

Operations

Business Development

Administrative

Executive Leadership

Accounting

Relevant Roles

Managing Partner

Business Owner

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Business Development Manager

Partnership Manager

Risk Manager

Compliance Officer

Company Secretary

Financial Controller

Account Manager

Business Consultant

Operations 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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