Buy-Sell Agreement
/ˈbaɪ ˈsɛl əˌgriːmənt/
Definitions
- (n.) A legally binding contract among business owners that sets terms for the voluntary or involuntary transfer of ownership interests.
The buy-sell agreement prevented disputes by defining how a partner's shares could be sold upon retirement or death.
Forms
- buy-sell agreement
- buy-sell agreements
Related terms
See also
Commentary
Typically used to ensure business continuity by providing clear mechanisms for ownership transfer; often funded by life insurance.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.