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A buy-sell agreement is a critical contract between business partners that outlines procedures for various adverse events during their partnership. Also known as a buyout agreement, business will, or business prenup, it helps partners plan for potential issues while things are going well. The agreement addresses scenarios involving the five Ds: death, disability, divorce, disagreement, and default, which can significantly impact a business. Written by a lawyer, this document establishes pre-determined actions for these situations, preventing chaos if they arise. Having a buy-sell agreement, similar to a personal will, is essential for ensuring orderly transitions and protecting the business's future.
