Partnership Agreement

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A partner’s interest in the partnership may be assigned by the partner. However, the assignee does not become a partner without the consent of the other partners. Without this consent, the assignee is only entitled to receive the assignor’s share of the profits of the partnership and the assignor’s interest when the partnership dissolves. The assignee has no right to participate in the management of the partnership or inspect the books of the partnership. A partnership agreement should prevent this type of assignment by giving the remaining partners the right of first refusal regarding any attempted assignment of a partner’s interest.

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