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Business Sale Agreement

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What is Business Sale Agreement?

A Business Sale Agreement (BSA) is a legal document signed between two parties which defines the terms and conditions of sale of business from owner to new owner. This type of agreement is used to address variety of matters that are important for business sale.

Why there is a need of Business Sale Agreement?

A Business Sale Agreement should contain below mentioned information:

  • Parties and their relationship: A Business Sale Agreement should contain the parties to the agreement such as details of both purchaser and seller of business along with their correspondence addresses.
  • Details of company or business which is being sold.
  • Details of assets to be transferred along with the business, if any.
  • Status and rights of new owner of business: An agreement can add clause about status of the new owner that whether he can is working on an independent basis and their areas of expertise. It should also mention about liberty to work freely with third parties.
  • Representations and Warranties: A Business Sale Agreement should contain representations and warranty provided as by defining whether new owner is compatible to enter into an agreement and whether he will be able to fulfill all the requirements of new partnership as per industry standards and requirements.
  • Transport of employees of existing company to new company.
  • Stocktaking clause
  • Preconditions, if any related to finance or loan etc.
  • Leases terms for business property,
  • a transfer of any business name, if required
  • intellectual property (such as logos and designs)
  • vendor warranties
  • Indemnities and assurances of both the parties from each party
  • whether the vendor is required to assist the purchaser with a business handover, after completion
  • Non-compete clause: This clause restricts new owner to indulge in any competitive business in their current market area for a prescribed period of time.
  • Non-solicitation clause: This clause restrain new owner from soliciting productive employees customers, or suppliers.
  • Confidentiality Clause: In case of confidential information both the parties can add Confidentiality clause in the same agreement or can execute different agreement too that depends on the severity of confidentiality needed under which both the parties are under obligation to not to disclose information to the third party and are willing to work together and agree to share confidential information to each other.
  • Legislation and jurisdiction of Court: It is important to mention this clause so that party may approach to local courts in case of default made by any party. Parties also need to mention jurisdiction of court to file a case.
  • Verification: Both the parties need to sign the Share Purchase Agreement and verify the same in order to avoid any dispute in later stage. It is not obligatory to attest the same but some parties go for the same for better authentication.

What are the services Lawyerinc offers for A Business Sale Agreement?

Our services:

Our comprehensive range of end-to-end solutions includes following:

  • End to end services for A Business Sale Agreement.
  • We have expertise in drafting A Business Sale Agreement.
  • We will get in touch with you through expertise in this field.
  • Our Experts shall guide you through the procedure and supply you with a detailed checklist of the required documents.
  • We shall verify the documents you provide.
  • Free consultation for any enquiry that you may have about A Business Sale Agreement.
  • You will get your A Business Sale Agreement drafting done without any hassles.

*Any fee, stamp duty and miscellaneous charges shall be payable extra.

Do contact us in case of any query related to A Business Sale Agreement and much more. To avail any of the above-stated services, kindly establish contact by posting a query at our site.

Is Contractor Agreement legally enforceable?

Once agreement is signed by verified by both the parties, it becomes binding and enforceable which enables them to discuss and start handing over business to other party. Both the parties need to ensure that terms and conditions mentioned in the agreement are complied and relied on completely for smooth functioning of business and to avoid any encumbrances in future.

Is oral agreement valid?

Although oral agreements are valid but agreements in written form are given more authenticity and are considered as legally valid. As well it avoids any kind of issues between the parties in future.

Frequently Asked Questions

  • 1. Are oral Business Sale Agreements are valid?

    Although oral agreements are valid but agreements in written form are given more authenticity and are considered as legally valid. As well it avoids any kind of issues between the parties in future.

  • 2. Can I file a Complaint if party breached Business Sale Agreements?

    Yes, you can file a complaint in court or monetary penalty can be imposed as written in the agreement.

  • 3. Can I file a recovery suit if individual fails to pay for services hired?

    Yes, you can file civil suit to recover the amount. Even criminal complaint can be filed before judicial magistrate.

  • 4. Why to get contractor agreement drafted through lawyerinc?

    Lawyerinc is a complete blend of professionals from across the globe. In –house team of lawyers and attorneys, CA and CS. All professional work together in Lawyerinc, providing you end to end solution. It guarantees delivery in the shortest and most reasonable rate in India. It enjoys a global presence.

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