Buyout Agreement: A legal document that outlines the terms and conditions of a transaction in which one party purchases a stake in a business from the other. A buyout agreement outlines how one partner can purchase the leaving partner's shares in the collectively owned business.Combination agreements, stock redemption agreements, and cross purchase agreements are the three most common structures for buysell agreements. Your agreement should address when a partner can or must be bought out of their partnership interest and the procedure to buy out the partner. An LLC buyout agreement template provides a framework for the legal paperwork that makes up an LLC buyout agreement. Identify the parties involved in the transaction. 2.