1. Retirement by Agreement

• A partner can retire if the partnership deed allows it
  
• The method and conditions for retirement must be stated in the deed
  
• Mutual agreement among partners is required for a smooth retirement
  
• The deed may define the notice period, settlement terms, and approval process
  
• If permitted, a partner may retire without dissolving the firm
  

2. Retirement with Notice in Partnership at Will

• In a partnership at will, a partner can retire by giving written notice
  
• No specific reason or consent is required in this case
  
• The notice must be clear and shared with all existing partners
  
• Retirement is effective from the date mentioned in the notice
  
• This option gives flexibility to partners in an informal setup
  

3. Legal and Procedural Formalities

• A retirement deed or agreement must be signed by all partners
  
• The partnership deed must be amended to reflect the change
  
• Notice of retirement should be filed with the Registrar if the firm is registered
  
• Public notice may be required to release liability from future acts
  
• All records and authorities should be updated with the new partner details
  

4. Settlement of Dues and Liabilities

• The retiring partner is entitled to their share of capital and profits
  
• Any unpaid dues must be cleared as per the agreed terms
  
• Valuation of assets may be needed for accurate settlement
  
• The partner must settle any outstanding liabilities if applicable
  
• Final settlement terms must be documented to avoid disputes
  

5. Impact on the Firm and Partners

• The firm continues with the remaining partners unless stated otherwise
  
• Roles and profit-sharing ratios of continuing partners may change
  
• Customers and creditors must be informed of the change
  
• Business operations may be adjusted to fill the gap
  

The firm must take steps to protect itself from future legal claims