Draft Of Purchase Agreement

Writing the sales contract requires a high degree of precision and diligence; A single paragraph of the contract may be the difference between an agreement reached or an agreement that has failed. The ideal scenario at this stage is to have an experienced consultant who has a proven track record in the successful development of business sales contracts. The last expected phase of an ATM process is called the sales contract or SPA. After all the due diligence and if a buyer has analyzed the actual state of the business for sale, it is finally time to represent the price of the contract and the sale price of the business. This is therefore the document that will be formalized in an authentic deed and which will ultimately be presented to a notary, including all the conditions of sale. If you plan to sell your business before the sales contract, you need to go through different phases that will help you maximize the final price. These measures can be decisive for the future of the company. If you need instructions from a reliable team during the process, please contact us. To create a sales and sale contract, first identify buyers and sellers by name and include a description of the property for sale. Also be sure to explain what closing costs, such as credits or fees, are paid by the buyer and those that are paid by the seller. In the text of the document, define the terms of the sales contract, including all the circumstances that would cancel the agreement. To terminate the document, you indicate a time frame for the buyer to accept and close the sale.

Then have your document consulted by a real estate lawyer to look for errors or missing items. For more advice from our legal co-author, as in part, how to write a dispute resolution clause, keep reading! The first main area stated in the document is the price, with the corresponding conditions: payment methods, forecast or non-deferred payments, variable payments based on the achievement of objectives, currency of payment, and circumstances that result in adjustments in the price (since the final price is based on the balance at the closing date of the agreement). The contract also contains information on whether the excess liquidity is part of the transaction or whether the seller has taken it as a dividend, although it is not necessary for that particular transaction. Some states require a sales and usage tax to be added to the purchase price of the sale of personal property. Make sure you know who is responsible for these taxes in your purchase and sale agreement. Start your agreement with the basics of the agreement, who participates and what is sold. Include the full name of the buyer and seller and the address of the company concerned. In addition to the physical address, the purchase and sale contract should include all items contained in the sale, such as devices, inventory, equipment and others. If there are periphery items that fall within the jurisdiction of the company`s name, for example. B company cars or mobile phones, they must be included or not included. The idea is to give a clear explanation of what is purchased, so that there will be no more questions after. The agreement should include the seller`s promise not to compete with the buyer in a future business for a given period of time.

It is important for the buyer to know that the previous owner cannot open shop next door and rob all customers one week after the sale of the business. The seller should also indicate their intention to transfer to the buyer all accounts, pay slips and other legal documents related to the transaction until a specific date, so that a clean transition is possible. The terms of the sales and sale agreement include, among other things, prohibitions on competition.