Asset Liquidation Agreement

With regard to construction projects, it is not uncommon for a party to be harmed in the performance of its work by the acts or omissions of a third party with whom it has no direct contractual relationship. For large projects, for example, subcontractors often carry out important aspects of overall construction, such as .B. Concrete work, steel production/construction or mechanical, electrical, sanitary, and these subcontractors may be most affected by delays and disruptions caused by owners. In such a scenario, it may be advantageous for the principal contractor and subcontractor to align their common interests with a claim against the responsible party (in this example) instead of arguing with each other. In this type of project, the appeal of a pass-through or liquidation agreement quickly appears. The principal contractor and its subcontractors can be powerful allies or, conversely, significant adversaries with the general contractor who is a prisoner of t, once all assets are liquidated, all products are used to repair unpaid debts related to the partnership. The remaining revenues are distributed among the partners in accordance with the separate partnership agreement. Once the liquidation process is complete, a final report will be sent to creditors, outlining the assets sold, the price for which they were sold and how those funds were distributed. It will also contain details of the liquidator`s costs and expenses. This is not limited to the partnership agreement previously concluded. In signing below, both parties acknowledge that they have read and understood all the conditions set out in this liquidation agreement. In the development of a liquidation or passage agreement for a subcontracting right against the government, the main provision from the point of view of the principal contractor is the exemption from liability for the subcontractor`s debt, except for the sums recovered by the government under that claim.

Once this partnership has been successfully resolved and ceased operations, all assets of the partnership will be accounted for and liquidated as follows.