Contracts Buy Sell Agreements Law and Legal Definition
A buy - sell agreement is an agreement between partners of a partnership or between a shareholder and a corporation whereby the parties agree to the terms and conditions of a future sale of the partners or shareholder's interest. By signing the agreement, the party contractually limits his or her ability to dispose of his or her interest in the partnership or corporation to the terms of the agreement. It may provide for the transfer of shares upon the death of a partner or shareholder.
Why should I use a buy - sell agreement? A buy - sell agreement is useful in assuring the orderly transfer of interests in the partnership or corporation. By limiting a party's ability to dispose of his or her interest in the partnership or corporation, control of the partnership or corporation may be assured.
May a buy - sell agreement be modified? Yes. These agreements provide for the later modification upon written agreement by all stockholders or partners.
Relevant legal forms include:
Buy - Sell (buy sell) Agreement Between Partners of a Partnership
Buy - Sell Agreement Partnership Interest