A business separation contract is a legal business contract drafted when two business partners or business organizations (in business collaboration) decide to divide their business into two parts so that each has a business of his own and runs it separately. This contract may be prepared when there is disagreement of few terms between the two partners or the two business organizations or when their business may not be generating the expected profit. The contract has details like on what basis and percentage the assets and the liabilities have to be shared among both the parties.
Sample Business Separation Contract
Separation contract number: AH451
Date Of registration: 2nd April, 2010
This business separation contract has been drafted and entered between John Woo referred to as the first partner and Paris Hilton referred to as the second partner
Both John Woo and Paris Hilton had agreed to carry out a partnership under the organization name Gas Garments Limited which specialized in manufacturing cotton and linen garments. The office of the organization was located at the following address:
41 Good Lane Road
New York, New jersey 4125.
And the factory was located at the following address:
5213 High End Street,
New York, New Jersey 5212.
As per the contract:
- The office premise will be divided into two parts, fifty percent of which will be given to each partner. They can run their individual business in that office premise.
- The factory will be sold and the proceeds will be divided on an equal basis.
Signature of first partner: Signature of second partner:
John Woo Paris Hilton