A Buy Sell Agreement is between business partners where the surviving partners buy out the other partner’s interest should a specific event occur. Specific events usually include death, and long-term disability.
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.
The Buy Sell agreement 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.
This Buy Sell Agreement 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.