Simply put, a buy-and-sell contract is a binding contract that requires someone to buy and another person to sell their shares at a certain price if certain events occur. It is important to note that it is not only binding,… but to buy. If X occurs, then someone is obliged to buy and someone is required to sell and not complete the transaction allows legal actions to enforce the commitment. This article examines the basis of changes to the purchase and sale agreements available to a non-public California business, recommends certain provisions, briefly describes how insurance may be (or may not) be a good idea for financing parts of the agreement, and concludes with a general example of a typical purchase and sale contract. Whatever the motivation, shareholders can sell or transfer their shares legally and successfully to an owner outside the family, without retroactive effect, if there is no legal agreement that limits it. This prevention agreement is called the shareholders` pact. Has anyone dropped the attendance ball? Although they must have been, the notice does not determine whether Lynd and his co-owners were aware of the statutes and the absence of a shareholder contract when they acquired the founder. Nor does it say whether they attempted to close their own shareholders with buy-sell provisions at the same time as the acquisition of the practice or thereafter. Each shareholder has the right to acquire the share put up for sale, since the number of shares he owns on that date is the total number of shares held by all other shareholders, with the exception of the selling shareholder; However, unless a shareholder buys his or her full share of the shares, the unreased shares may be acquired by other shareholders. 5.08 This instrument is the one and only agreement of the parties who respect the sale and purchase of their shares in the company and correctly defines the rights, obligations and obligations of the other at the time of its date.