This template represents the first step in dissolving a partnership. A partnership may be dissolved when the intended purpose of the partnership has been achieved, when the partners enter an agreement to that effect, when an option to dissolve is provided for in the partnership agreement, when a dissolution date is specified in the partnership agreement, when the partnership interest is wholly transferred to one partner, except if another partner joins the partnership within the prescribed time limit or when ordered by a court of law.

We recommend using this template when any partnership wishes to end its activities, liquidate its assets to the partners, terminate the partnership agreement and formally end its existence.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Breach
0.01.04 Claim
0.01.05 Confidential Information
0.01.06 Dispute
0.01.07 Effective Date of Dissolution
0.01.08 Encumber / Encumbrance
0.01.09 Financial Statements
0.01.10 Force Majeure
0.01.11 Intellectual Property
0.01.12 Law
0.01.13 Legal Representatives
0.01.14 Liquidation Period
0.01.15 LIQUIDATOR
0.01.16 Loss
0.01.17 Ordinary Course of Business
0.01.18 PARTNER
0.01.19 Partnership
0.01.20 Partnership Agreement
0.01.21 Partnership Interest
0.01.22 Person
0.01.23 Prime Rate
0.01.24 Remaining Assets
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross-References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Knowledge
0.05.09 Approval
0.05.10 Accounting Standards
1.00 PURPOSE
1.01 Dissolution and Termination of Partnership Agreement
1.02 Conditions
2.00 LIQUIDATION
2.01 Remaining Assets and Final Account
2.02 Approval of Final Account
3.00 DISTRIBUTION
3.01 Distribution Options
3.01.01 Distribution of Certain Remaining Assets
3.01.02 Instructions to LIQUIDATOR
3.02 Subsequent Recovery of Assets
3.02.01 Held in Trust
3.02.02 Notice of Distribution
4.00 ASSUMPTION OF PARTNERSHIP LIABILITIES
5.00 RULES GOVERNING THE PARTNERS
5.01 During Liquidation Period
5.02 After Liquidation Period
5.02.01 Registration of Dissolution
5.02.02 No Representation or Agency
5.03 As of Effective Date of Dissolution
5.03.01 Release
5.03.02 Discharge
6.00 SECURITY
7.00 MUTUAL REPRESENTATIONS AND WARRANTIES
7.01 PARTNERS
7.01.01 Status
7.01.02 Authority
7.01.03 Binding Agreement
7.01.04 Canadian Resident
7.01.05 Canadian Status
7.01.06 Commission
7.01.07 Insurance
7.01.08 Nominee
7.01.09 Independent Legal Advice
7.01.10 Disclosure
7.01.11 Legal Proceedings
7.02 Partnership Interest
7.02.01 Legal and Beneficial Owner
7.02.02 No Other Interest
7.02.03 Encumbrances
7.02.04 Partnership Agreements
7.03 Partnership
7.03.01 Ownership of Assets
7.03.02 Applicable Laws
7.03.03 Advances from Partnership
7.03.04 Other Partners
7.03.05 Liabilities
7.03.06 Assets
7.04 State of Assets and Liabilities
8.00 DUTIES AND OBLIGATIONS OF PARTNERS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 Duration of Undertaking
8.01.03 End of Agreement
a) Request for Return
b) Destruction
8.01.04 Penalty
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Insurer
8.02.04 Prior Notice
8.02.05 Additional Named Insured
8.02.06 Certificates of Insurance
8.02.07 Notice of Modification or Cancellation
8.03 Continuation of Representations and Warranties
8.04 Indemnification
8.04.01 Scope
8.04.02 Procedure
8.04.03 Third-Party Claim
8.04.04 Deductible
8.04.05 Limitation
8.05 Disclosure of Agreement
8.05.01 Undertaking
8.05.02 Public Announcement
8.05.03 Exception
8.05.04 Default
8.06 Unexpected Event
8.06.01 Undertaking to Renegotiate
8.06.02 Procedure
8.07 Further Assurances
8.08 Non-Competition
8.08.01 Scope of Undertaking
8.08.02 Breach of Undertaking
a) Automatic Penalty
b) Payment
c) Protective Measures
8.08.03 Reasonableness of Clause
9.00 LIQUIDATOR
9.01 Appointment
9.02 Replacement
9.03 Duties of LIQUIDATOR
9.03.01 Dissolution and Distribution
9.03.02 Continuance of Activities
10.00 SPECIAL PROVISIONS
10.01 Assignment
10.01.01 Prohibition
10.01.02 Reasonable Cause
10.01.03 Effect of Breach
10.01.04 Exception
10.02 Force Majeure
10.02.01 Limitation on Liability
10.02.02 Duty
10.02.03 Right of Other PARTNERS
10.03 Relationship Between the PARTNERS
10.04 Remedies
10.04.01 Choice
10.04.02 No Limitations
10.05 Costs Incurred
11.00 GENERAL PROVISIONS
11.01 Notice
11.02 Dispute Resolution
11.02.01 Negotiating to Resolve Dispute
a) Written Notice
b) Meeting
c) Legal Proceedings
d) Protective Measures
11.02.02 Mediation
a) Process
b) Settlement
c) Arbitration [OR Legal Proceeding]
11.02.03 Arbitration (if V1 of 12.02.02 c) above applies)
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Subcontracts
e) Confidentiality
f) Hearing
g) Ruling
h) Costs
i) Supplementary Rules
11.03 Choice of Forum
11.04 Counterparts
11.05 Amendment
11.06 No Waiver of Rights
11.07 Electronic Transmission
11.08 Language
12.00 TERMINATION
13.00 EFFECTIVE DATE
14.00 DURATION
15.00 SCOPE
15.01 Parties
15.02 Survival

SCHEDULE A – EXCERPT OF A RESOLUTION OF PARTNER A[B]
SCHEDULE 0.01.09 – FINANCIAL STATEMENTS
SCHEDULE 0.01.20 – PARTNERSHIP AGREEMENT
SCHEDULE 0.01.24 – REMAINING ASSETS
SCHEDULE 1.02 c) – CONSENTS
SCHEDULE 5.03.01 – RELEASE FORM
SCHEDULE 8.08.01 A – NON-COMPETITION - ACTIVITIES
SCHEDULE 8.08.01 B – NON-COMPETITION - TERRITORY