Legal Question in Business Law in Arizona
I am one partner of a three person partnership for a small business. We all have agreed to to forgo the partnership contract. Is ripping the contract enough to end this partnership?
2 Answers from Attorneys
Typically no, there is a winding up process that is required to dissolve a partnership. This process should be specified in your partnership agreement. There are also final tax returns to file. Consult with an attorney in your area for specifics.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
I agree with Mr. Murphy's answer and would add to his answer by saying that the answer to your question depends upon whether you ever started up the business, ever did any business with the public, ever made any contracts with anyone as a partnership and whether one of you is going to take over the business and continue on in some fashion. In any case, at a minimum, I would want to have a release of liability agreement with each of the other partners.
You should definitely get legal counsel before you do anything with the partners.
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