Benefits Lesson

Buy Sell Agreements

A?buy?and sell agreement is a legally binding contract that stipulates how a partner's share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy and sell agreement will spell out how the shares need to be sold to the remaining partners or to the partnership. This can either be funded by the business or by a life insurance policy.

Lesson Script

What This Video Covers

A?buy?and sell agreement is a legally binding contract that stipulates how a partner's share of a business may be reassigned if that partner dies or otherwise leaves the business. Most often, the buy and sell agreement will spell out how the shares need to be sold to the remaining partners or to the partnership. This can either be funded by the business or by a life insurance policy.
Insurance Terms to Know

Rescission

Rescission voids a policy as if it never existed, usually because of material misrepresentation or fraud.