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Examples :: Business Letters :: Letter advising dissolution of partnership

Business to business letter advising dissolution of partnership

A partnership is a shared liability. Each partner is liable for the actions and debts of the other. It is quite common for a partnership to be dissolved, for either business or relationship reasons.

This is a very important document, and relates to legal obligations of the business.

That affects the legal status of the business, and your business associates must be told of the change of status. They need to know who's taking the liabilities.

Use a distribution list, and ensure all relevant parties are told well prior to the dissolution.

In many cases, it is appropriate to make specific references to contracts entered into with the former partnership.

These cases should receive legal scrutiny prior to notification.

The strictly legal approach is to give specific information. The example below is fairly simple, but note the details.

The new business ownership is defined. A date is given to indicate the cessation of equity and participation of a partner in the business.



Your Reference
Our Reference

Dear (use full title of the addressee)

Dissolution of partnership

Please be advised that this firm will operate as a sole trader / corporate entity / new partnership as of (insert date).

As of the above date (insert name of partner) will no longer have equity in the business. That equity has been transferred to the sole trader / corporate entity / new partnership.

Accordingly, the liabilities and assets of the former partnership are now vested in (sole trader / corporate entity / new partnership).

If you have any queries, or wish to vary your business arrangements with the new business, or enter into any new arrangement, please contact the writer.

Yours sincerely



Please note:

  • This text is intended for advisory and guideline purposes only.
  • Any business letter can become a legal document, so check your content properly before issuing.
  • Any executable or statutorily defined document should be checked for compliance with legal requirements, and you should seek legal advice regarding its contents.