Buy-sell agreements are limits placed on ownership rights of closely-held organizations which require the shares be resold to either the organization or current partners when the owner decides to leave or passes away. Many partnerships and proprietorships require new owners to sign buy-sell agreements to keep control over who is in the business.
Buyout agreement (also known as a buy-sell agreement) refers to a contract that gives rights to at least one party of the contract to buy the share, assets, or rights of another party given a specific event. These agreements can arise in a variety of contexts as stand-alone contracts or parts of larger agreements.
A call option (often shortened to call) is a contract that allows its owner to buy an asset or service from the seller at a certain price until a certain date. The buyer never has to purchase the assets, and the option will terminate at the specified date. People pay for call options because they offer chances of profit or safety in price, and a seller benefits if the assets sold fall in price after selling the call option.
In a legal context, to cancel is to render something otherwise valid as void or no longer in effect. For example, a person might write a check and then destroy it or write “void” across its face; both would successfully eliminate the check’s ability to serve as legal tender. A person might also cancel an otherwise binding contract.
Capacity refers to the ability to make a rational decision based upon all relevant facts and considerations. Some common usages of the term “capacity” in a legal sense include:
A cartel is a group of independent corporations or other entities that join together to fix prices, rig bids, allocate markets, or conduct other similar
A cashier’s check is a bill of exchange, drawn by a bank upon itself (the bank is the debtor), payable to another person, showing the payee’s authorization to receive the amount represented on the check from the bank.
[Last reviewed in June of 2021 by the Wex Definitions Team]
Caveat emptor is a common law doctrine that places the burden on buyers to reasonably examine property before making a purchase. A buyer who fails to meet this burden is unable to recover for defects in the product that would have been discovered had this burden been met. The phrase “caveat emptor” is Latin for “let the buyer beware.”
