California, I entered into an agreement with a contract on a 27 ft sailboat in California. I now want out as of 1-1-2025. The important terms regarding a partnership termination are are below: item #1 and #14. He says he doesn't owe me a dime and if I want out I get nothing. I am on Title, he added me 1/2 way through the year on his own accord. I originally said I was perfectly happy with a bill of sale to secure my 1/2 partnership, the Marina lease agreement is in Bill Smiths name and cannot be transferred to me.
I disagree with him, I believe these terms below let me out and he has to pay me the original $4,250 that is my share.
1. Term of Agreement. This Agreement is effective for the minimum period of One (1) years from 1/1/2024 to 12-31-2024 unless mutually agreed in writing to be terminated by all of the Parties. The Agreement may be extended for every year after the end of the 1st year by mutual agreement and with a simple amendment to the Agreement 2. Consideration. The consideration for the covenants and agreements of each Partner that are contained in this Agreement shall be that Partner’s right to participate in the boat sharing partnership, which the Partners acknowledge and agree shall constitute sufficient and adequate consideration.
14. Valuation and Transfer of Interest. The Partners agree that sale of the boat to a 3rd party will be at fair market value and the proceeds will be divided evenly amongst all the Partners, minus any fees or charges owed from maintenance, insurance, costs of sale etc. Bill Smith, may not sell the vessel without at least 60 days written notice to Al or by mutual consent. Al has no rights to sell the vessel. If either partners chooses to transfer his/her interest to the remaining Partner or Partners, the interest will be valued as a 50% fraction that equals the current Value of the boat at the signing of this Agreement, $8,500. The purchasing Partner/ Party will then assume all of the rights and obligations of the exiting partner. Until the time that Al can be added to the Title and Slip Lease agreement then AL will retain the right to ask for a 1 year extension of the Agreement every year. Should Bill Smith not want to extend the contract, then he shall reimburse Al his share of the Partnership $4,250. Within 10 days of Bill Smith delivering in writing his intent not to extend the Agreement. Both partners will retain the rights to purchase the vessel upon the agreement of the other partner for $4,250. If Al should choose to buy the boat with Bill smiths consent, then that can only occur as long as the slip becomes available to transfer or Al has obtained his own slip. At this point in time Al is on a waiting list for a 28 ft slip in the Marina. Should the Agreement be canceled at any point in time, Al shall return the key fob to the vessel with-in 3 days of cancelation. Should Al die anytime during this agreement then Bill Smith will buy out Al’s share of the initial agreement of $4,250 and send to my wife at the address on the agreement with-in 10 days of notice of Al’s death. Should Bill Smith die anytime during this agreement then Al will buy out Bill Smith's share of the initial agreement of $4,250 and send to Bill Smith's wife at the address on the agreement with-in 10 days of notice of Al’s death.
I disagree with him, I believe these terms below let me out and he has to pay me the original $4,250 that is my share.
1. Term of Agreement. This Agreement is effective for the minimum period of One (1) years from 1/1/2024 to 12-31-2024 unless mutually agreed in writing to be terminated by all of the Parties. The Agreement may be extended for every year after the end of the 1st year by mutual agreement and with a simple amendment to the Agreement 2. Consideration. The consideration for the covenants and agreements of each Partner that are contained in this Agreement shall be that Partner’s right to participate in the boat sharing partnership, which the Partners acknowledge and agree shall constitute sufficient and adequate consideration.
14. Valuation and Transfer of Interest. The Partners agree that sale of the boat to a 3rd party will be at fair market value and the proceeds will be divided evenly amongst all the Partners, minus any fees or charges owed from maintenance, insurance, costs of sale etc. Bill Smith, may not sell the vessel without at least 60 days written notice to Al or by mutual consent. Al has no rights to sell the vessel. If either partners chooses to transfer his/her interest to the remaining Partner or Partners, the interest will be valued as a 50% fraction that equals the current Value of the boat at the signing of this Agreement, $8,500. The purchasing Partner/ Party will then assume all of the rights and obligations of the exiting partner. Until the time that Al can be added to the Title and Slip Lease agreement then AL will retain the right to ask for a 1 year extension of the Agreement every year. Should Bill Smith not want to extend the contract, then he shall reimburse Al his share of the Partnership $4,250. Within 10 days of Bill Smith delivering in writing his intent not to extend the Agreement. Both partners will retain the rights to purchase the vessel upon the agreement of the other partner for $4,250. If Al should choose to buy the boat with Bill smiths consent, then that can only occur as long as the slip becomes available to transfer or Al has obtained his own slip. At this point in time Al is on a waiting list for a 28 ft slip in the Marina. Should the Agreement be canceled at any point in time, Al shall return the key fob to the vessel with-in 3 days of cancelation. Should Al die anytime during this agreement then Bill Smith will buy out Al’s share of the initial agreement of $4,250 and send to my wife at the address on the agreement with-in 10 days of notice of Al’s death. Should Bill Smith die anytime during this agreement then Al will buy out Bill Smith's share of the initial agreement of $4,250 and send to Bill Smith's wife at the address on the agreement with-in 10 days of notice of Al’s death.
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