BOND BY SURVIVING PARTNER FOR PAYMENT OF THE VALUE OF THE DECEASED PARTNER’S SHARE BY INSTALMENT TO HIS LEGAL HEIRS AND FOR INDEMNIFYING THE DECEASED PARTNER’S ESTATE AGAINST PARTNERSHIP LIABILITY
THIS BOND made this _________ day of _______ 20_____,
Between
____________________________________________ (insert the name, address etc. of obligor) (hereinafter called ‘the Obligor’) Witnesseth that the obligor is held and firmly bound to _____________________________________ (insert the name, address etc. of sureties) (hereinafter called ‘the Sureties’) in the sum of Rs.____________ to be paid to the executors (legal heirs of the deceased partner).
Signed by the obligor the day and the year first above written.
_______________________________
Signature of Obligor
WHEREAS:
- By a Deed of Partnership made on the ________ day of _______, 20_____, between the Obligor of the One Part and surety of the Other Part it was amongst other things provided that the Obligor and surety should become and be partners in the said trade and business under the name and style of ________ for the term of _______ years and also that in case either of the said partners should die before the expiration of the said term, then the surviving partner should within three months after the death of partner so dying, settle with the legal heirs of the deceased partner all accounts and matters relating to the said partnership, and that such surviving partner should pay to the legal heirs of such deceased partner such a same as by the books of the firm should appear to have been contributed by the said deceased partner to the capital of the firm at his death, and that such surviving partner should be considered to be the purchaser of such shares of the deceased partner in the said capital at such sums as aforesaid, and that the said surviving partner should purchase the shares of the deceased partner in the residue of the property, credit and effect and the said partnership, and that the value of such assets should be ascertained by two persons, one to be chosen by the surviving partner and the other by the legal heirs of the deceased partner, and that the surviving partner should enter into a bond in security to the legal heirs of the deceased partner, the amount of such sums and valuation by four equal instalments at the respective period of 6,12,18,24 months next after the death of such partner with interest at the rate of ___________% per annum from such death, and also a bond for indemnifying the estate of the deceased partner in the firm against the debts and liabilities of the said partnership.
- The said surety died on the ________ day of _______ having duly made his Will dated, etc. whereby he appointed the executors to be his executor, and on the ______ day of _______ the executor duly proved the said will in the district court at ______________.
- By the books of the said partnership, it appears that, the said CD had contributed the sum of Rs. __________ to the capital of the partnership at his death.
- Pursuant to the provisions contained in the said partnership deed, the value of the shares of the deceased partner in the said property, credits, and effects of the partnership has been as curtained to be the sum of Rs. ____________ making with the aforesaid sum of Rs. _________ the aggregate sum of Rs. ___________.
- In further pursuance of the said provisions, the obligor has executed the above written bond.
NOW THE CONDITION of the above written bond is such that if the obligor or his legal heirs shall pay to the executors or other legal heirs or his personal representatives for the time being of the said CD, as part of his estate, the sum of Rs. ________________ at the times and by instalments following that is to say:
- The sum of Rs. ___________ on the) _________ day of _________
- The sums of Rs. _________ on the _______ day of _________ and
- The sum of Rs. _________ on the ______ day of _______ and
- The sum of Rs. __________ on the _______ day of ________, and also on the same days, interests on the said sum of Rs. _________ or such part thereof as for the time being remain unpaid at the rate of ________% per annum, from the death of the said CD and shall at all times as from the date of such death save harmless and keep indemnify the executors or the legal heirs of the said CD, deceased partner, from and against all debts and liabilities whatsoever in respect of the said partnership business.
AND in the event of fulfilment of the above conditions by the obligor or his legal heirs the above written bond shall be void otherwise the same shall remain in full force and effect. IN WITNESS WHEREOF, etc.
SIGNED AND DELIVERED by the parties in the presence of Witness:
- ______________
- ______________
