Buy and Sell Agreement: 2 parties (Death only)

BUY AND SELL AGREEMENT – 2 PARTIES, DEATH ONLY

Summary

This Buy and Sell Agreement may be considered for the mutual protection of both shareholders in a company or members in a close corporation in the event of the death of one of the parties. Note that disability is not included in this agreement.

More information

Why do I need a Buy and Sell Agreement?

A Buy and Sell Agreement strives to set out the procedure to be followed if a shareholder/member or a key individual of a shareholder / member dies or is disabled. Such an Agreement provides for the remaining shareholder / member to purchase the shares / members interest in such event, and generally establishes the process to do this. Buy and Sell Agreements are usually associated with life insurance policies. But you do not necessarily have to have life insurance policies in place to implement a Buy and Sell Agreement.

Who should use a Buy and Sell Agreement?

The shareholders in a company or the members in a close corporation, where there are two shareholders / members may find this agreement useful.   

What does the Buy and Sell Agreement say?

The Agreement consists of:

• Definitions
• Introduction
• Policies
• Valuation
• Purchase Price
• Delivery of Documents
• Cession of Policies
• Disputes
• General

What does the Buy and Sell Agreement look like?

• The agreement can be printed onto four A4 pages.

What do you need to do to use the Buy and Sell Agreement?

• Read the document to ensure that it suits your requirements. Complete the requisite sections, making changes as required.
• Ensure both the shareholders / members sign the Agreement with each getting a copy of the final, signed agreement.

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