This posting is in regards to buy/sell agreements that are also known as a partnership agreement that in the event that a partnership fails or a death to one of the party's interest. This agreement is to answer the question as to what is going to happen if one of the partner disolves his/her interest.
The biggest mistake someone can do in business is get involved with an associate without an agreement. The point is that when you get into a agreement with a partner you are in essence involving yourself in a marriage. And every marrage should be done with a pre-nuptial. Same goes for business associates, there needs to be an agreement in the event that there is a dispute that disolves the company.
Nobody wants to think of a business relationship failing at start up, but it happens. A simple agreement would be something about how assets are to be divided up at parting. Corporations are very important in that when created that the paid in capital is equal because if it isn't then the company books are out of order. This strains the shareholders and there in lies a problem.
My advice from prior dealings, Have a buy/sell agreement!
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