Shot Gun Provision Clause Samples

A Shot Gun Provision is a contractual mechanism used to resolve deadlocks between business partners, typically in joint ventures or closely held companies. Under this clause, if one partner wishes to exit or force the other out, they can offer to buy the other partner's shares at a specified price per share; the recipient must then either accept the offer and sell their shares or buy the offeror's shares at the same price. This provision ensures a fair and efficient way to break stalemates, preventing prolonged disputes and enabling the business to move forward.