We faced the same scenario, and we solved the problem by contacting the paid application from the recipient's account.
Disclaimer: this may not be the solution for all instances, but in our case it was the only way to continue the transfer process.
- Go to itunes connect using destination account
- Go to agreement, taxes, banking
- Do not open the transfer agreement. Instead, click the "request" button in the "iOS Paid Applications" agreement at the top of the page.
- Review the information and accept the agreement. You do not need to provide all the information, but simply request it.
- Return to the previous page and open the transfer agreement. Now you can accept it.
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