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Letter Advising of Dissolution of Partnership

By: Beth Morrisey MLIS - Updated: 21 Sep 2012 | comments*Discuss
Letter Business Letter Partner Partners

When a business partnership dissolves it is appropriate to let everyone who does business with the entity know about the resulting changes. Legal professionals can provide details of legal obligations to let others know about this dissolution, but less legal notification may also be appreciated by those who have done business with the organisation. Such a letter should indicate the date on which the partnership ceased, who left the partnership and who has assumed responsibility for the business and its outstanding obligations. It is also appropriate to include details on how the letter recipient can get in touch with the "new" business should they have any questions or concerns. A letter advising of the dissolution of a partnership should be formatted as a formal business letter.

Date Partnership Ceased

The date the partnership ceased should be the date on which it became legal that the partnership was dissolved. This is usually the date on which any buy out or other legal activities occurred such that the partner who left the business ceased to have legal rights or responsibilities to it. Details of how the dissolution occurred are not needed for the content of a letter advising of the dissolution of a partnership.

Who Left the Partnership

The partner who left the partnership should be named in a letter advising of such a dissolution. Details of why (s)he left are not necessary for inclusion in such a letter but it should be noted clearly that this person has no legal rights or responsibilities regarding the "new" business.

Responsibility for Outstanding Obligations

The partner who has assumed responsibility for the business should also be named in a letter advising of the dissolution of a partnership. It should also be made clear that this person has assumed all legal responsibility for outstanding obligations that existed from before the dissolution of the partnership, and that this person will be responsible for all obligations incurred going forward.

"New" Contact Information

Whether or not contact information has changed for the "new" business, this information should be given. If it remains unchanged from previous information then it should simply be reiterated but if it is new or there is a new person who should be contacted then it is important to make this new information clear within a letter advising of the dissolution of a partnership.

Formal Format

A letter advising of the dissolution of a partnership is a formal business letter. As such it should be sent from a person of authority within the "new" organisation and include the name as well as mailing information of the addressee. A formal salutation, closing and a space for a signature from the writer should be included. Such a letter should be typed and printed on organisational letterhead. If it is being delivered to people within an organisation then using the organisation's mail delivery is appropriate, otherwise delivery via post or courier is best.

Sample of a Letter Advising of the Dissolution of a Partnership

Mr. Fred Roberts
Job Title
Organisation Mailing Address


Mr. Stewart Pitt
Job Title
Organisation Mailing Address

Dear Mr. Pitt,

Please be advised that as of [Date], the partnership between [Partner One] and [Partner Two] which made up the business [Business Name] of [Address] was dissolved.

[Partner One] does not now have any legal relationship with [Business Name]. Going forward, [Partner Two] is now responsible for [Business Name] as well as all outstanding obligations held by it from both before and after this dissolution.

If you have any questions or concerns about this development please do not hesitate to contact [Business Name]'s new Customer Service Representative [Individual Name] on [Telephone Number or Email Address].

Yours sincerely,

Fred Roberts
Job Title

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