Buy/sell agreement

{
  "id": "MLC-T-INS-000656",
  "term": "Buy/sell agreement",
  "field": "Insurance and risk management",
  "definition": "A legally binding contract between co-owners of a business that dictates how a departing owner's share will be handled upon a triggering event like death, disability, or retirement. The agreement obligates the remaining owners or the business entity to purchase the departing owner's interest at a predetermined price or valuation method. These agreements are frequently funded with life or disability insurance policies to provide the necessary liquidity for the buyout.",
  "url": "https://mlchart.com/terminology/insurance/buy-sell-agreement/"
}