Ensuring you have a proper Buy/Sell Agreement in place, for your business, can help you avoid potential business disruptions. The buy and sell agreement, also known as a buyout agreement, or business will, are often used by sole proprietorships, partnerships, and closed corporations in an attempt to smooth transition in ownership when each partner dies, retires, or decides to exit the business. In order to ensure that funds are available, partners in a business commonly purchase life insurance policies on fellow partners. In the event of death, the proceeds from the policy will be used to purchase the business interests of the deceased.