A purchase/sale agreement covers the death, disability and retirement of one of the owners, as well as differences of opinion on the ownership and operation of the business that may arise when an owner wishes to leave the partnership. The agreement often contains a formula or process for evaluating the business to facilitate the purchase of an owner. A buy/sell contract can protect your business from the potential damage caused by the loss of a partner. This type of agreement covers both the terms of ownership and the operation of your business and should be an essential part of your business plan. The most common event covered by a buy/sell agreement is the death of a partner who describes the measures taken and the type of financing, such as the product of life insurance. B to purchase the business interests of the deceased partner. In addition, a well-developed agreement will include other provisions, such as a clause on chevrotine rifles, triggered in situations where a commercial partnership has deteriorated significantly, a right of first refusal to the other partner before the sale to an outsider, retirement or exit of a partner, obstruction of a partner or other specific circumstances such as gross misconduct, detention or divorce, and establishes the rules of orderly liquidation or restructuring. A purchase agreement, also known as a buy-back agreement, is a legally binding agreement between the co-owners of a business that regulates the situation when a co-owner dies or is forced to leave the company or decides to leave the business.  If your business`s sales contract requires other owners or partners to acquire the interests of a deceased or disabled owner, purchase insurance can be used for the sale of life or disability insurance to finance your sales contract. You can finance this agreement yourself with life insurance and designate the executives as beneficiaries. They will probably want the leaders to own the policy – and perhaps also pay the premiums. If you have died, managers could benefit from a tax-free benefit from the directive so that they can complete the purchase.