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A buy-sell agreement is a contract between business partners outlining procedures for adverse events in their partnership, essentially planning for the unexpected. Also referred to as a buyout agreement, business will, or business prenup, it is created during favorable conditions to address future challenges. Written by a lawyer, this document stipulates predefined actions for five critical scenarios: death, disability, divorce, disagreement, and default. These situations can significantly impact a business, making it crucial for owners to have a plan established in advance. Similar to a personal will, a buy-sell agreement ensures that business operations can continue smoothly in case of unforeseen events.
