A contract (oral or written) between a landlord and tenant that provides for a tenancy for a short period of time, such as one month; it automatically renews at the end of this period, unless the landlord or tenant give each other the proper amount of notice (which usually must be written) to terminate the contract.
A buy and sell agreement is an approach used by sole proprietorships, partnerships and closed corporations to divide the business share or interest of a proprietor, partner, or shareholder. The owner of the business interest being considered has to be disabled, deceased, retired or expressed interest in selling. The buy and sell agreement requires that the business share is sold according to a predetermined formula to the company or the remaining members of the business. Before the interest of a deceased partner can be sold to the company or
A buy–sell agreement consists of several legally binding clauses in a business partnership or operating agreement or a separate, freestanding agreement, and controls the following business decisions:
· Who can buy a departing partner's or shareholder's share of the business (this may include outsiders or be limited to other partners/shareholders);
· What events will trigger a buyout, (the most common events that trigger a buyout are: death, disability, retirement, or an owner leaving the company) and;
· What price will be paid for a partner's or shareholder's interest in the partnership and so on.
Buy–sell agreement can be in the form of a cross-purchase plan or a repurchase (entity or stock-redemption) plan. For greater neutrality and effectiveness of the buy–sell arrangement, the service of a corporate trustee is recommended.