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In the absence of any contrary agreement, a partner would expect that on his retirement or death he, or his estate, should receive from the partnership an amount equivalent to the balance on his capital account, after allowing for any necessary revaluation of the partnership's assets. The making of such a payment might involve either the realisation of assets needed for the continuance of the partnership business, or increased borrowings with their attendant costs. It is not uncommon, therefore, for a partnership agreement to provide either:

1. Ìý

   •ÌýÌýÌýÌý that the share of a deceased or retiring partner should accrue automatically to the continuing partners, either with or without payment, or

2. Ìý

   •ÌýÌýÌýÌý that the continuing partners should have the option to acquire the share of a deceased or retiring partner at some agreed value, or according to some agreed method of valuation