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Partnership Termination Agreement Template for Saudi Arabia

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Key Requirements PROMPT example:

Partnership Termination Agreement

"I need a Partnership Termination Agreement for a Saudi Arabian technology consulting partnership with three partners, where one partner is retiring and their shares will be purchased by the remaining partners, with the termination to take effect from March 1, 2025."

Document background
The Partnership Termination Agreement is a critical legal document used when partners decide to formally dissolve their business relationship in Saudi Arabia. It becomes necessary when partners mutually agree to end their partnership, when the partnership term expires, or when specific events trigger termination under the original partnership agreement. This document must comply with the Saudi Companies Law of 2015 and Sharia principles, requiring careful consideration of local regulatory requirements and commercial practices. It typically includes detailed provisions for asset distribution, liability settlement, confidentiality obligations, and dispute resolution mechanisms. The agreement also addresses practical aspects such as notification requirements to relevant authorities, handling of ongoing contracts, and employee matters. Understanding the local business environment and legal framework is crucial, as the document must be filed with the Ministry of Commerce and may require additional governmental approvals.
Suggested Sections

1. Parties: Identification of all partners and their legal details

2. Background: Brief history of the partnership, reference to original partnership agreement, and reason for termination

3. Definitions: Key terms used throughout the agreement

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

5. Acknowledgment of Dissolution: Formal agreement by all partners to terminate the partnership

6. Settlement of Accounts: Process for final accounting and financial settlements between partners

7. Distribution of Assets: Agreed method and terms for distributing partnership assets

8. Treatment of Liabilities: Allocation of existing debts and liabilities

9. Release and Discharge: Mutual release of claims between partners

10. Confidentiality: Ongoing obligations regarding partnership confidential information

11. Governing Law: Confirmation of Saudi law application and Sharia compliance

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

13. Execution: Signature blocks and execution requirements

Optional Sections

1. Ongoing Projects: Used when there are incomplete projects requiring allocation or completion arrangements

2. Intellectual Property Rights: Required when the partnership owns or uses significant IP that needs to be distributed or licensed

3. Employee Matters: Necessary when the partnership has employees requiring transfer or termination arrangements

4. Post-Termination Restrictions: Include when partners agree to non-compete or non-solicitation provisions

5. Tax Matters: Detailed section needed for partnerships with complex tax arrangements or outstanding obligations

6. Insurance and Indemnification: Include when specific insurance policies need to be maintained or terminated

7. Government Approvals: Required when termination needs specific regulatory approvals

8. Bank Accounts and Financial Arrangements: Include when there are complex banking relationships to be unwound

Suggested Schedules

1. Asset Register: Detailed list of all partnership assets and their agreed distribution

2. Liability Schedule: Comprehensive list of all outstanding liabilities and payment responsibilities

3. Financial Statement: Final balance sheet and profit/loss statement of the partnership

4. Settlement Calculations: Detailed calculations of final settlements between partners

5. Outstanding Contracts: List of ongoing contracts and their proposed treatment

6. Required Notices: Templates of notices required for authorities, clients, and other stakeholders

7. Property Documents: Details of any real estate or leases and their disposition

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 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

Real Estate

Construction

Trading

Manufacturing

Retail

Technology

Healthcare

Consulting

Financial Services

Hospitality

Education

Relevant Teams

Legal

Finance

Compliance

Risk Management

Operations

Administrative

Corporate Governance

Business Development

Human Resources

Commercial

Relevant Roles

Managing Partner

Chief Executive Officer

Chief Financial Officer

Legal Counsel

Company Secretary

Business Development Manager

Partnership Manager

Compliance Officer

Risk Manager

Finance Director

Operations Manager

Commercial Director

General Counsel

Administrative 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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