09 July 2024
Certainly! Here's a draft outline of a partnership deed clause related to the death of a partner in a medical practice partnership:
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**Partnership Deed**
**Clause: Death of a Partner**
**1. Notification:** - In the event of the death of a partner, the surviving partners shall be notified within [number] days by the legal representative or executor of the deceased partner's estate.
**2. Purchase of Deceased Partner's Share:** - Upon the death of a partner, the surviving partners shall have the first right to purchase the deceased partner's share in the partnership. - The purchase price of the deceased partner's share shall be determined based on the valuation method agreed upon in this partnership deed or by mutual agreement among the surviving partners and the legal representative of the deceased partner.
**3. Payment Terms:** - The purchase price for the deceased partner's share shall be paid in [number] installments over a period not exceeding [number] months from the date of death. - The first installment shall be paid within [number] days from the date of determination of the purchase price.
**4. Valuation Method:** - The valuation of the deceased partner's share shall be determined by [method of valuation, e.g., mutual agreement, third-party appraisal]. - The valuation shall take into account the fair market value of the deceased partner's share in the partnership as of the date of death.
**5. Rights and Obligations of Legal Representative:** - The legal representative or executor of the deceased partner's estate shall cooperate with the surviving partners in the valuation process and the transfer of the deceased partner's share. - The legal representative shall provide all necessary documents and information related to the deceased partner's interest in the partnership.
**Continuation of Partnership:** - The death of a partner shall not automatically dissolve the partnership. - The surviving partners may continue to operate the partnership business upon completion of the purchase of the deceased partner's share, subject to the terms of this partnership deed.
**Amendment to Partnership Deed:** - Upon the death of a partner, this partnership deed may be amended as necessary to reflect the changes in partnership ownership and management. - Any amendments to this partnership deed shall be made in writing and signed by all surviving partners and the legal representative of the deceased partner's estate.
**IN WITNESS WHEREOF**, the partners have executed this clause related to the death of a partner on the date first above written.
**[Signatures of All Partners]**
**[Signature of Legal Representative of Deceased Partner's Estate]**
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This draft clause outlines the basic provisions regarding the death of a partner in a medical practice partnership. It's essential to customize this clause according to your specific partnership agreement and seek legal advice to ensure compliance with local laws and regulations.
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