A buy-sell agreement, also known as a buyout agreement, is a legally binding contract between co-owners of a business that outlines the terms and conditions under which a co-owner’s interest in the business can be bought or sold. This agreement provides a framework for what should happen in various scenarios, such as if one owner wants to sell their share, retires, becomes disabled, passes away, or faces other life-changing events. Buy-sell agreements are commonly used in partnerships, limited liability companies (LLCs), and closely held corporations.