Common Contracts
1 similar Sale and Agreement contracts
Sale and agreement to sell pdfSale and Agreement • June 24th, 2021
Buy-sell agreements provide for the future sale of the business interest of a shareholder who dies, becomes disabled or retires. Buy-sell agreements are beneficial to business partners because they predetermine how shares of the company will be handled in the event that a shareholder leaves the company. They are also beneficial to the shareholder who leaves the company because it gives his family financial security. The types of buy-sell agreements vary. The entity buy-sell agreement requires that the company itself agrees to puchase a deceased shareholder's share of the company. It requires that the company purchases a life-insurance policy on the life of the shareholder. The amount of the policy should be equal to the amount of the shareholder's share of the company. After the shareholder dies, the cash amount of the life-insurance policy will be added to the shareholder's estate. The shareholder's interest will then be transferred to the company. The cross-purchase agreement is the
