buy-sell agreement
A binding contract between co-owners that controls the purchase of a withdrawing owner's ownership interest and includes transfer restrictions that control when owners can sell their interest, who can buy an owners interest, and what price will be paid. These agreements often cover what happens when an owner retires, goes bankrupt, becomes disabled, gets divorced, or dies.
Category: Business, LLCs & Corporations → LLCs, Corporations, Partnerships, etc.

Nolo’s Plain-English Law Dictionary. . 2009.

buy-sell agreement
n. An agreement among the owners of a business or the stockholders of a closed corporation to purchase, or to have the business or corporation purchase, the interest or shares of any withdrawing or deceased owner or stockholder.

Webster's New World Law Dictionary. . 2000.

buy-sell agreement
   a contract among the owners of a business which provides terms for their purchase of a withdrawing partner's or stockholder's interest in the enterprise.

Law dictionary. . 2013.

Look at other dictionaries:

  • Buy-sell agreement — A buy sell agreement may be thought of as a sort of premarital agreement between business partners/shareholders. It is sometimes called a business will . An insured buy sell agreement (agreement funded with life insurance on the participating… …   Wikipedia

  • buy-sell agreement —    A contract among the owners of a business (often dating from the time the business was set up) that provides terms for their purchase of the percentage of the enterprise owned by a partner or shareholder who has decided to withdraw …   Business law dictionary

  • buy-back agreement — / baɪ bæk əˌgri:mənt/ noun an agreement that a producer will buy back goods from a distributor on a specific date if the distributor has not been able to sell them …   Marketing dictionary in english

  • buy-and-sell agreement — ➔ agreement * * * buy and sell agreement UK US noun [C] LAW ► an agreement saying that the remaining partners of a company will buy the part of a company owned by a partner who dies, becomes unable to work, or wants to sell: »A buy and sell… …   Financial and business terms

  • Buy And Sell Agreement — An approach used by sole proprietorships, partnerships and closed corporations to divide the business share or interest of a proprietor, partner, or shareholder. The owner of the business interest being considered has to be disabled, deceased,… …   Investment dictionary

  • cross-purchase buy and sell agreement — Under this type of arrangement, the surviving owners of a business agree to buy out the withdrawing owner. Assume, for example, R and S are equal shareholders in T Corporation. Under a cross purchase buy and sell agreement, R and S would contract …   Black's law dictionary

  • agreement — a‧gree‧ment [əˈgriːmənt] noun [countable] 1. an arrangement or promise to do something, made by two or more people or organizations: • Under the agreement, the company will distribute our products in North America. • What happens if the warring… …   Financial and business terms

  • buy — I verb acquire by purchase, acquire ownership of, bargain for, complete a purchase, contract, get in exchange, make a purchase, make one s own, mercari, obtain, order, pay a price for, pay cash for, pay for, procure, procure title to, purchase,… …   Law dictionary

  • buy — To acquire the ownership of property by giving an accepted price or consideration therefor; or by agreeing to do so; to acquire by the payment of a price or value; to purchase. To obtain something for a price, usually money. See also purchase @… …   Black's law dictionary

  • agreement to sell — an agreement by which the time when property is to pass to the person who has agreed to buy is to take place at some future time or subject to a condition. See sale. Collins dictionary of law. W. J. Stewart. 2001 …   Law dictionary

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.