Texas Draw (buy/sell agreement)

A buy/sell agreement is sometimes called a “Texas Draw” in real estate lingo.
 
 
Detroit News
Sunday, February 2, 2003
Taubman’s son fights to save his dad’s empire
He shows jailed father’s grit in battling takeover
By Daniel Howes / The Detroit News
(...)
The buy-sell agreement, called a “Texas draw” in real estate parlance, presents Simon with a dilemma: He can pay Gordon his share, effectively raising the price of the Taubman shares Simon covets. Or he can sell his share to Gordon outright. Simon must decide what to do two days before his latest offer for Taubman expires.
 
AllBusiness.com
A. What is a Buy/Sell?
Unfortunately, practitioners may be confused about what a buy/sell is and what it should be called. The term “buy/sell” has multiple meanings, and to further complicate matters, other terms (e.g., “put/call” or “Texas draw”) are sometimes used to describe the type of buy/sell that is the subject of this Article.1 When used in this Article, “buy/sell” is intended to refer to a procedure under which one venturer eventually purchases the interest of the other venturer, but neither venturer knows at the outset who will be the buyer and who will be the seller. Under specified circumstances, a venturer may initiate this procedure, under which:

1. The initiating venturer must establish the prices of the venture’s interests, which will give both venturers consistent and relative values for their respective interests.

2. The other venturer then must choose whether to sell its interest under this pricing or buy the initiating venturer’s interest under this pricing.