Purchase of Share in the Event of Death of a Partner

Under the partnership agreement between Ram Laxman and Bharat, it has been agreed that in the event of the death of a partner, the survivors would have to purchase his share in the firm on the following terms. The terms of the agreement are as follows:

1. Purchase Price
The purchase price for the deceased partner's share in the firm would be determined based on the value of the firm as on the date of the death of the partner. The value would be determined by a mutually agreed-upon method or by a third-party valuator.

2. Payment of Purchase Price
The purchase price would be paid to the deceased partner's legal heirs or representatives within a specified period, which is usually six months from the date of the death of the partner. The payment can be made in installments or as a lump sum, as per the agreement.

3. Transfer of Interest
Upon payment of the purchase price, the deceased partner's share in the firm would be transferred to the surviving partners. The surviving partners would then become the sole owners of the firm.

4. Right of Survivorship
The partnership agreement also provides for the right of survivorship. This means that in the event of the death of a partner, his share in the firm would pass on to the surviving partners, and not to his legal heirs or representatives.

Conclusion

In summary, the partnership agreement between Ram Laxman and Bharat provides for the purchase of a deceased partner's share in the firm by the surviving partners. The purchase price is determined based on the value of the firm, and the payment can be made in installments or as a lump sum. Upon payment, the deceased partner's share is transferred to the surviving partners, who become the sole owners of the firm.