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Partner quits project, agrees to sign a termination agreement, transferring all his profit share & rights 2 me without compensation. Enforceable?

1 Answers. Asked on Feb 20th, 2017 on Business Law - New York
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I have been working on a project with my business partner. We got a lot of work done but, suddenly and voluntarily, he quit the project. He gave me all the work/materials and told me that he didn't want any credit nor monetary compensation. We signed a 2 page agreement, before starting the project, where we agreed to partner for this project only. The deal memo says that he would get a % of the profits and that we would split all the costs incurred, such as traveling expenses, hiring other people sporadically, etc. We actually had several expenses but he doesn't want any reimbursement either. My question is, since this isn't a registered LLC, and we started collaborating after just partnering as individuals, what would be the best way to dissolve and terminate our partnership? He agrees to sign a termination agreement that says that he is transferring all his shares of the profit and rights to me without any compensation. Would that be an enforceable termination agreement?
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Answered on Feb 20th, 2017 at 9:27 PM

As long as the contract is drafted properly, with a recitation of adequate consideration, it will be enforceable. In this case, the consideration for him walking away from the project with no claim to profits or even reimbursement is your release of him from responsibility for his share of the labor for the project.  

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