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A buy-sell agreement is a legal contract between business partners that outlines how to handle adverse events during their partnership. Also known as a buyout agreement, business will, or business prenup, it is created when relationships are positive to prepare for potential challenges. This agreement, usually drafted by a lawyer, establishes pre-determined actions for five critical scenarios: death, disability, divorce, disagreement, and default. These situations can harm a business, and having a buy-sell agreement ensures that there is a plan in place, much like having a personal will, to address these issues effectively, providing clarity and security for all parties involved.
