Assume That You Own a Business with a Friend and You

question 18

Multiple Choice

Assume that you own a business with a friend and you both signed an agreement that says if one of you should leave the company,the other person has the legal right to purchase the share of the company owned by the person leaving. This is known as a

• A) buyback clause.
• B) nondisclosure clause.
• C) noncompete clause.
• D) unlimited personal liability clause.
• E) uniform partnership clause.

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Definitions:

Agreement

A mutual understanding or arrangement between two or more parties outlining their respective rights and obligations.

Agents

Individuals or entities authorized to act on behalf of another, known as the principal, in dealings with third parties.

Principals

In legal and business contexts, refers to the primary parties involved in a transaction or agreement.

Breaching

The act of violating a law, duty, agreement, or expectation.