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A buy-sell agreement is a contract among 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 established while conditions are favorable to prepare for potential challenges. The agreement, drafted by a lawyer, specifies pre-determined actions for common scenarios referred to as the "five Ds": death, disability, divorce, disagreement, and default. These situations can be harmful to a business, so having a buy-sell agreement ensures that partners have a clear plan, similar to possessing a personal will, thus safeguarding the business's future against unexpected events.
