Buy Sell or Buyout Agreement
The Buy Sell agreement Template may be used with partnerships, companies or trusts, and for co-owners of a business who own their shares outright, rather than through a trust.
How a Buy and Sell Agreement Works
Buy and sell agreements are commonly used by sole proprietorships, partnerships, and closed corporations in an attempt to smooth transitions in ownership when each partner dies, retires, or decides to exit the business.
In the case of the death of a partner, the estate must agree to sell.
This Buy Sell Agreement Template includes provisions for:-
- Creating the mechanism to buy and sell shares in the business
- Method for determining market value
- Payment of purchase monies
13 Pages long.
A buy–sell agreement, also known as a buyout agreement, is a legally binding agreement between co-owners of a business that governs the situation if a co-owner dies or is otherwise forced to leave the business, or chooses to leave the business.
A buy and sell agreement (or buyout agreement) is a legally binding agreement that stipulates how a partner’s share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy – sell agreement stipulates that the available shares be sold to the remaining partners or to the partnership of the company