Traditional meaning of agate, purchased in English`s legal history (with some legal use in England and the United States in the nineteenth century) [1]: (in English) A purchase or a good deal. A purchase, a “deal” or a contract. Also “buy”. A purchase and sale agreement is a legally binding contract that specifies how a partner`s stake in a company can be reallocated if that partner dies or otherwise leaves the company. In most cases, the purchase and sale agreement provides that the available share is sold to the remaining partners or the partnership. Purchase and sale agreements are designed to help partners handle potentially difficult situations in a way that protects the business and their own personal and family interests. For example, the agreement may prevent owners from selling their interests to external investors without the consent of the remaining owners. Similar protection may be granted in the event of the death of a partner. In addition to the majority stake in the company, purchase and sale agreements specify the funds to be used to assess the value of a partner`s shares.

This can be useful apart from the issue of buying and selling shares. For example, in the event of a dispute between the owners about the value of the business or the involvement of a partner, the valuation methods included in the purchase and sale contract will be applied. Partners must work with a lawyer and an auditor when drafting a purchase and sale agreement. Powered by Black`s Law Dictionary, Free 2nd ed. and The Law Dictionary. A typical agreement could involve selling the interests of a deceased partner to the remaining business or owners. This prevents the estate from selling the interest to a foreigner. When a sole proprietor dies, a key employee can be named as the buyer or successor. This is a preliminary summary of an upcoming entry in the Encyclopedia of Law.

Please check later to get full admission. Purchase and sale contracts are often used by sole proprietorships, partnerships and private enterprises to facilitate the transfer of ownership when each partner dies, retires or decides to leave the business. Acquire ownership of a property by giving an accepted price or consideration for it; or by agreeing to do so; paying a price or value; to buy. Weaver. In the event of the death of a partner, the estate must accept the sale. To ensure that funds are available, the partners of a company usually take out life insurance for the other partners. In the event of death, the proceeds of the policy will be used to purchase the shares of the deceased. The purchase and sale agreement requires that the share be sold to the company or other members of the company in a predetermined formula. The purchase and sale agreement is also called a purchase-sale agreement, a buy-back agreement, a company will or a business prenup. Some partners opt for a mix of both, with some parts being purchased by individual partners and the rest being purchased by the partnership.