Common Contracts
1 similar Buyout Agreement contracts
Buyout agreement templateBuyout Agreement • April 1st, 2021
A buy-sell agreement, or buyout agreement, is a legal contract outlining what happens if a co-owner or partner’s share of a business if they die or want/need to leave the company. A buy-sell agreement form will include details about who can or cannot buy the leaving or deceased owner’s shares, how to determine how much the shares are worth, and what events will cause the buy-sell agreement to come into effect. Table of Contents 1. What is a Buy-Sell Agreement? A buy-sell agreement is a contract drawn up to protect a business in the event something happens to one of the owners. Also called a buyout, the agreement stipulates what happens with the shares of a business if something unforeseen occurs. This agreement also provides limitations as to how owners can sell or transfer shares of the company. The contract is written to provide better control and management of a company. These agreements are often likened to prenuptial agreements for companies. They stipulate what will happen to the
