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PLAYBOOK TEMPLATES
Partnership Agreement
A Partnership Agreement defines the rights, duties, and profit-sharing arrangements among business partners. This playbook explores governance, capital contributions, and dispute resolution.
Termination Provisions
Negotiation strategy
Ensure termination rights are balanced and include a reasonable cure period. Negotiate break fees that reflect potential damages.
Focus on securing mutual termination rights and clear post-termination obligations. Ensure break fees are justified and proportionate.
Essential elements
1
Mutual Termination Rights
Termination by mutual consent.
2
Cure Period
Time to remedy a breach.
3
Break Fees
Compensation for termination breaches.
Action framework
ACCEPT
Propose edits if cure periods are too short or break fees are excessive.
EDIT
Reject if termination rights are one-sided or lack clarity.
ADD
Add clauses for post-termination obligations if missing.
PRO TIP
Always specify the effective date of termination to avoid disputes.
Real-world examples
FAVORABLE
Mutual Termination Rights
"Either Party may terminate this Agreement upon mutual written consent. Such termination shall be effective as of the date specified in the mutual consent, or if no date is specified, then upon the date of the last signature."
NEUTRAL
Cure Period
"In the event of a breach, the non-breaching Party shall provide written notice to the breaching Party, specifying the nature of the breach. The breaching Party shall have thirty (30) days from receipt of such notice to cure the breach to the reasonable satisfaction of the non-breaching Party."
UNFAVORABLE
Break Fees
"If this Agreement is terminated by either Party due to a breach by the other Party, the breaching Party shall pay to the non-breaching Party a break fee in the amount of $50,000 as liquidated damages, which the Parties agree is a reasonable estimate of the damages likely to be suffered by the non-breaching Party."
Alternative scenarios & positions
High-Value Transactions
For transactions exceeding $1 million, bespoke termination provisions may be necessary to address unique risks and obligations.
Joint Ventures
Termination provisions should consider the impact on shared assets and ongoing projects.
Technology Licenses
Ensure termination clauses address the return or destruction of licensed technology and data.
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WEEK 3
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WEEK 4
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COMPANY
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