Home > Glossary

Buy Sell Agreement

Buy/Sell Agreement


Buy/Sell Agreement — a contract among members of a firm that provides for the continuation of the business through an agreement by which each principal agrees that, in the event of his or her death, his or her estate will sell its interest back to the business entity for a predetermined amount. The amount may be calculated as a fixed amount or as a variable amount, depending on business factors. The agreement is usually funded by life insurance.

Related Products