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A buy-sell agreement is a contract between business partners that outlines procedures for adverse events during their partnership, effectively planning for the unexpected. Also known as a buyout agreement, business will, or business prenup, this document is crafted by a lawyer to establish pre-determined actions in response to situations known as the "five Ds": death, disability, divorce, disagreement, and default. These scenarios can significantly harm a business, making it crucial for owners to have a plan in place. Just like a personal will, a buy-sell agreement is essential for ensuring a structured response during challenging times, safeguarding the interests of all partners involved.
