what is a buy and sell agreement 
a buy and sell agreement or buy 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 stipulates that the available share be sold to the remaining partners or to the partnership buy sell agreements often use life insurance policies to fund the potential buyout in the event of a partner s death a buy and sell agreement may also be called a buyout agreement a business will or a business prenup 