Buy-Sell Agreement FAQ

A buy-sell agreement is used for buying and selling businesses, right?

Related Ads

Need Professional Help? Talk to a Lawyer

Enter Your Zip Code to Connect with a Lawyer Serving Your Area

searchbox small

Questions:

Answer:

A buy-sell agreement is used for buying and selling businesses, right?

No. Despite the name, buy-sell agreements have little to do with buying and selling companies. Instead, they are binding contracts between co-owners that control when owners can sell their interest, who can buy an owner's interest, and what price will be paid. These agreements come into play when an owner retires, goes bankrupt, becomes disabled, gets divorced, or dies -- in other words, a buy-sell agreement is a sort of prenuptial agreement between business co-owners. Mainly these agreements guide buyouts between the owners themselves; that's why we like to call them buyout agreements.

Find a Lawyer
Get Professional Help

If you need legal advice for your business, talk to a lawyer.

Talk to a Business Lawyer

LA-NOLO2:DRU.1.6.4.20141222.29342