What does buy and sell agreement mean?

buy and sell agreement meaning in Law Dictionary

Both partnerships and director/shareholder managed businesses require agreements to assist ensure a satisfactory disposal of stocks in some circumstances. The 'buy and offer' route is the one such, in which its written into a wider arrangement that in case of death or retirement, one party will sell the business share, and another purchase. A fixed contract in the place of an alternative.

buy and sell agreement meaning in Business Dictionary

1. Home loan financing: Three-way contract between home purchaser as well as 2 loan providers: a building lender, and a home loan lender. Under its conditions, the building loan provider runs a short-term loan to the customer of a property to finance its building, and keeps the home as a collateral. Whenever construction is complete, the mortgage lender takes care of the mortgage, gets control of the lien on the property, and permits the client to settle the quantity in monthly installments over a long term (usually 20 years). Also known as tri-party agreement. 2. Partnerships: alternate term for mix purchase arrangement.