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A buy-sell agreement is a contract between business partners that outlines procedures for handling adverse events during their partnership, effectively planning for the unexpected. Also known as a buyout agreement or business prenup, it establishes pre-determined courses of action for scenarios involving the "five Ds": death, disability, divorce, disagreement, and default. These situations can be detrimental to a business, and having a buy-sell agreement ensures that there is a plan in place for managing them. Much like a personal will, this agreement is crucial for business owners to protect their interests and maintain stability in challenging circumstances.
