What is Buy-Sell Agreement?
Buy-sell agreement is a legal contract drawn by the lawyer that indicates in detail of the parties to the agreement, an evaluation method of the business and method of payment for the following occurrences: 1. Death. 2. Disability. 3. Disillusionment. 4. Transfer of business interest at retirement. Buy-sell agreements are used in any types of business including a sole proprietor or partnership. Since these types of business must legally close their doors when the owner or partner dies. The use of buy-sell agreements allow the business to continue while the new owner completes the transfer of ownership without going into debts. Here are the buy-Sell agreement guarantee commitments: 1. Each party will transfer their interest to the surviving partner(s). This agreement will also bind their heirs and estate to the agreement. 2. Each party will pay the purchase price as indicated in the agreement. 3. All parties will buy and maintain sufficient life insurance to fund the agreement. 4. The p
