Document background
The Partnership Buyout Agreement is a critical document used when one or more partners wish to exit a partnership while allowing the business to continue under the remaining partners' ownership. This document, governed by Dutch law and compliant with the Dutch Civil Code (Burgerlijk Wetboek) and Commercial Code (Wetboek van Koophandel), outlines the complete transaction process, from valuation to final transfer of partnership interests. It typically includes detailed provisions for purchase price determination, payment structures, tax considerations, and ongoing obligations of all parties. The agreement is particularly important for protecting both the departing partner's right to fair compensation and the continuing partners' interest in maintaining business continuity. It should address potential areas of dispute such as client relationships, confidentiality, non-compete provisions, and outstanding liabilities.
