Which contract permits the remaining partners to buy-out the interest of a disabled business partner?

The appropriate contract that allows the remaining partners to buy out the interest of a disabled business partner is the Disability Buy-Sell agreement. This type of agreement is specifically designed to address the situation wherein a business partner becomes unable to work due to a disability. It stipulates how the remaining partners can purchase the share of the disabled partner, ensuring that the business can continue operating smoothly without their involvement.

This agreement typically involves the use of insurance products that provide the necessary funds to facilitate the buyout. By having a Disability Buy-Sell agreement in place, businesses can protect themselves from potential disruptions caused by a partner's disability, ensuring not only financial stability but also maintaining the control and continuity of the business.

In contrast, while a Buy-Sell Agreement generally refers to agreements concerning the sale of a partner's or shareholder's interest under various circumstances (including death or voluntary exit), it does not specifically highlight disability-related buyouts as its primary focus. Business Continuation and Key Person Insurance have different objectives, focusing more on the overall business continuity and protection of essential personnel, rather than specific provisions for disabled partners.