Also known as a Buy and Sell Agreement. This is a formalised and legal contact between the partners or shareholders of a business which ensures that the management and/or ownership will pass smoothly to the remaining partners/shareholders in the event of death or incapacity by one of the partners or shareholders. The aim is to prevent the business becoming unmanageable due to disagreements or infighting resulting from the death or incapacity. It will also ensure that the requirements of the deceased partner’s heirs are met.