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A Partnership Buy-Sell Agreement becomes essential when partners want to establish clear protocols for ownership transitions in their business. This agreement, regulated under Singapore law, provides certainty about what happens to partnership interests when significant events occur. It typically includes provisions for valuation methods, payment terms, funding mechanisms, and transfer restrictions. The agreement helps prevent potential disputes and ensures business continuity while protecting both departing and remaining partners' interests. It's particularly crucial for professional partnerships and family-owned businesses operating in Singapore.
