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Simple English definitions for legal terms

cross-purchase buy-sell agreement

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A quick definition of cross-purchase buy-sell agreement:

A cross-purchase buy-sell agreement is a plan where business partners agree to buy enough life insurance on each other to cover the cost of buying out a partner's share if they die or leave the business. This helps ensure that the business can continue without financial strain and that the departing partner's family receives fair compensation for their share of the business.

A more thorough explanation:

A cross-purchase buy-sell agreement is a type of partnership insurance plan. In this plan, each partner buys and maintains enough insurance on the life or lives of other partners. This is done to purchase a deceased or expelled partner's equity.

Let's say there are three partners in a business. They have a cross-purchase buy-sell agreement in place. Partner A buys insurance policies on the lives of Partner B and Partner C. Partner B buys insurance policies on the lives of Partner A and Partner C. Partner C buys insurance policies on the lives of Partner A and Partner B.

If one of the partners dies or is expelled from the business, the remaining partners use the insurance money to buy the deceased or expelled partner's equity. This ensures that the business can continue without any financial disruptions.

This type of agreement is common in small businesses where there are only a few partners. It provides a way to protect the business and the partners' investments in case of unexpected events.

cross-plaintiff | cross-question

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Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
BulbasaurNoLikeCardio
7:51
@texaslawhopefully: best prices and only fast food that doesn't make me sick
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