A buy-sell agreement is a written document drafted among partners of a business to decide the conditions of business if any partner dies or is removed from the ownership or decides to leave the job.
This agreement is a legal contract and can be used in a court of law. It is placed to conclude the issues of ownership if the sudden death of a partner occurs. This agreement is drafted before the business has been set up to evaluate all possible scenarios.
Buy-Sell Agreement Template
This agreement is drafted on the date [DATE] between the following individuals,
Name: Sean Mason Address: 83 Long Street, New York, USA. Contact:849 749-7293
Name: Richard Martin Address: 23 Main Boulevard, New York, USA. Contact: 455 234 3566
Terms and conditions of the following agreement are mentioned below,
This agreement shall commence from date (__/__/__) and should be taken seriously.
Business will have 4 owners with equal partnership.
No partner will be dominant over other partner in terms of share or contribution.
Different partners are assigned different departments and their contribution to the business’s progress vary from one another.
Each partner will be responsible for managing their team.
In case of sudden death of a partner, ownership of the shares will be passed on to the worthy heir of the partner.
If the heir is not age appropriate, remaining partners will take the responsibility of taking charge in his steady and provide to the family.
When the age of heir is appropriate, all shares will be transferred without any delay.
Partners will be forcefully removed from the ownership because of misconduct, theft, no progress, and other related issues.
Disability of a partner to manage a team or bear the workload can also be the causes of partner removal.
In case of removal of any partner due to above mentioned reason, ownership will be transferred to another member having expertise in the related field.
In case of removal of a partner, ownership will not be divided among partners.
Partners can leave the ownership and remove themselves from executive seat.
In case of voluntary removal, partner will consider transferring ownership to remaining members
Ownership will be transferred in exchange for money.
If the offer made by remaining partners is not satisfactory for the leaving partner, he may transfer ownership to any unknown buyer.
This agreement will be cancelled if the business does not stand out.
This agreement will face dissolution if members cannot manage to work together.
There cannot be any more members with ownership of the business.
Agreement will be signed in the presence of two credible witnesses provided by the mutual understanding of all partners.
This agreement is drafted in the presence of legal counsels of all the partners to make sure that every partner is treated fairly.