A buy-sell contract is useful for most business structures, especially partnerships and limited liability companies. The agreement can be tailor-made or incorporated into a partnership agreement or shareholders` agreement. An experienced business law lawyer can also use a sales contract to dispel many concerns, such as: these agreements offer a financial guarantee to owners of une léséed or unconsidered businesses. They also provide financial security to an aggrieved business owner or the estate of a deceased owner and significantly reduce the risk of lengthy litigation. In other words, if you are a business owner, you should in any case consider creating a purchase/sale contract. As the saying go, it`s wise to hope for the best and plan for the worst! A buy-sell contract is a legally binding contract that defines the parameters under which shares can be bought or sold in a company. A buy-sell agreement is an attempt to avoid potential chaos if one of an organization`s partners wants or needs to leave the business. For more than 20 years, Garmo and Garmo, LLP has provided strong legal advice and representation for all kinds of businesses in San Diego and throughout Southern California. Our lawyers have an in-depth knowledge of business law and over the years we have seen almost all the problems and disputes that can arise internally between business partners and between companies and external parties.
One of the most important documents that a business with multiple owners should have is a complete buy/sell agreement. This agreement sets out in advance the conditions under which an owner may sell his stake in the company. In the absence of such an agreement, a company exposes itself to ownership disputes that can be very costly and even threaten the survival of the company. The first reason why a lawyer should check these types of agreements is simple – it is a contract. Treaties have been around for a long time, and for good reason – they help protect the interests of both sides. The problem is that a poorly written (or cleverly) contract can contain loopholes that benefit one party more than the other. A lawyer will check every word of the document to make sure everything is fine. While the importance of a buy-sell contract can vary depending on the size and complexity of the business, even small businesses can benefit greatly from the financial guarantee that these agreements offer to their co-owners. At Brown Paindiris & Scott, our lawyers have been representing the interests of the economy since 1977.
We understand the needs of business owners and have the skills and experience to help them with potentially challenging topics, such as designing a purchase/sale agreement or dissolving a business. The quality of the representation offered by our law firm was confirmed by receiving a Preeminent AV* assessment from Martindale-Hubbell, the highest rating available. A purchase/sale contract determines what happens when an owner wants to leave the business. Sales/sale contracts should be concluded at the beginning of a business, so that each owner clearly understands their rights and obligations. A well-crafted purchase/sale contract can be a very strong insurance against excessive disruption when an owner tries to leave the business. A well-crafted buy/sell agreement should cover a wide range of triggering events, such as: Another problem that can arise in contracts is when one party understands it much better than the other. Appointing a lawyer who helps answer questions or concerns is a good way to mitigate this problem.