• Sales contracts stipulate how the partner’s share in the business can be transferred in the event of the death or departure of the partner.

  • Sales agreements may also establish a method for determining the value of the business.
  • The most common sales contracts are cross-purchase and purchase (redemption); some agreements will combine the two.
  • Cross-purchase agreements allow remaining owners to buy shares of a deceased or selling owner.
  • Buyout agreements require the business entity to buy out the shares of the selling owner.