Definition, Meaning & Synonyms

buyout-clause

noun

/ˈbaɪ.aʊt klɔːz/

Definition

A provision in a contract that allows one party to buy out the interest of another party.

Examples

Many investors include a buyout-clause in their agreements to ensure a smooth exit strategy.
Negotiating the terms of the buyout-clause can be pivotal in partnership deals.

Meaning

The buyout-clause grants an option for one party to purchase the rights or ownership of the other party’s stake in the agreement, often used in business agreements or partnerships.