Definition - What does Buyout Agreement mean?
A buyout agreement is an agreement made between partners of a business where one partner buys out the other partner's share of the business. Every buyout agreement is specific to the circumstance. As long as it is legally compliant, any agreement for financial recompense can take place within this type of agreement including ongoing future payments or a percent of future profits.
Justipedia explains Buyout Agreement
As long as both parties agree to the terms and adhere to them, the buyout agreement will be legally binding. It must be an equitable and fair agreement or it risks the possibility of being brought before the courts in the future.