Corporate Buyout Agreement

[1] If you are a co-owner of a business, it is important that you have entered into a buyout agreement with your partners. A buyback agreement, also known as a buy-sell agreement, is a legal contract between the owners of a business that determines how the future sale or purchase of an owner`s stake in the business is managed. The unfortunate result of no purchase and sale contract is even more common when an owner dies or is so disabled that he is no longer able to contribute to the business. A purchase-sale contract is a legally binding agreement between a company[1] and its owners[2] that clearly defines the impact of a significant event – such as the death, divorce or departure of a partner – on the management and control of the business.