Departing Partner Sells to Partnership
There may come a time when a partner will sell his or her partnership interest to the partnership itself. This may occur if a partner and the partnership agree to separate, if a partner gets an offer to purchase and the partnership exercises its right to purchase, or if a partner if expelled according to the terms of the partnership agreement.
If the partnership agreement is drafted to cover this situation, a new agreement may not be necessary. However, it may still be a good idea to prepare a partnership buy-out agreement just to be sure that everyone is in agreement. You will also need a buy-out agreement if you wish to vary the buy-out terms from those in your partnership agreement.