Buy & Sell Agreement
A buy-and-sell agreement is an agreement between the business partners, obligating themselves to sell on their death or disability their interest to the survivors and likewise obligating the survivors to purchase the deceased partner’s interest.
Buy and sell agreements incorrectly drafted, could cause mayhem. There are numerous risks with catastrophic consequences on the surviving partner/s and loved one’s to be considered when contemplating or implementing a buy and sell agreement. However a sound buy and sell agreement protects all parties on the fortuitous event of death or disability of a partner or shareholder.