Buy and Sell Agreement: 2 parties (Death only)

Buy and sell agreement - 2 parties, death only

Summary

This Buy and Sell Agreement is recommended 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

A Buy and Sell Agreement sets out the procedure to be followed if a shareholder/member dies. The Agreement provides for the remaining shareholder / member to purchase the shares / members interest from the deceased estate and sets out how this is to be done. Buy and Sell Agreements are usually associated with life insurance policies. But you do not have to have life insurance policies in place to implement a Buy and Sell Agreement. 

The shareholders in a company or the members in a close corporation, where there are two shareholders / members can use this agreement.   

The Agreement consists of:

The agreement can be printed onto four A4 pages.

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.