buyout(redirected from buyouts)
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2. In a contract, the act of one party paying a fee to the other party to end the contract before its completion. The term especially applies to employer-employee contracts. See also: Break fee.
(1) Securing the removal of tenants from a building by paying cash incentives for the early termination of their leases.Owners may desire to buy out tenants in order to rehab the property to attract a better quality of tenant at higher rates; in order to sell the property to an owner-occupier; or to remove an objectionable tenant causing problems but not technically in default.(2) Securing the release of a tenant from lease obligations in another building so the tenant can rent in the owner's building.The other building's owner may permit the buyout if he or she believes the departing tenant can be replaced fairly quickly, thereby gaining a large windfall profit from the buyout payment.