N—Entity Purchase Agreement

The entity purchase agreement is another means of providing for the complete disposition of a business interest. Under such an arrangement the contract is with the business rather than with the other owners.

DURING LIFETIME. To illustrate how it works, assume that we have a corporation that is owned equally by A and B. They would each enter into an agreement with the business for the purchase and sale of their respective interests. Typically, this agreement is binding, in that it obligates both A and B, and their estates, to sell, and the business to buy, upon the death, disability or retirement of either one of them.