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Share Purchase Agreement

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What is Share Purchase Agreement?

A Share Purchase Agreement (SPA) is a legal document signed between two parties which defines the terms and conditions of sale and purchase of shares in a company. This kind of agreement is predominantly used to relocate ownership and possession of shares of a company from a merchant to a buyer at specific price.

Why there is a need of Share Purchase Agreement?

A well written Share Purchase Agreement clearly delineates and defines all terms of relationship between parties as well as product or services provided. It not only clarifies expectations and goals of seller but helps to avoid any dispute between the parties in the future. The main motive of the Share Purchase Agreement is to illustrate that the terms of the agreement are understandable by both the parties by specifying the quality and the quantity of shares to be sold, any preconditions and scope of the same.

What Are advantages of Signing a Share Purchase Agreement?

  • Due Diligence:A Share Purchas Agreement is a primary business process being carried out when an investor is being included. The deprivation of this agreement while starting a new set up may lead to some undesirable consequences.
  • Protect the interest of the parties: A Share Purchas Agreement not only helps to secure the interest of both the parties before transaction but it also makes sure that it will include all relevant transactions and steps to be taken between the parties
  • No third party participation: This agreement makes sure that the ownership of company’s property and shares remain with company only and to transfer shares there is no need for the participation of any third party.

What are the services Lawyerinc offers for Share Purchase Agreement?

Our services:

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

  • End to end services for Share Purchase Agreement.
  • We have expertise in drafting Share Purchase 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 Share Purchase Agreement.
  • You will get your Share Purchase 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 Share Purchase Agreement and much more. To avail any of the above-stated services, kindly establish contact by posting a query at our site.

What information needs to contain in Share Purchase Agreement?

A Share Purchase Agreement should contain below mentioned information:

  • Parties and their relationship: A Share Purchase Agreement should contain the parties to the agreement such as details of both purchaser and seller of shares along with their correspondence addresses.
  • Details of company from which shares are being sold.
  • Share allocation description and scope of work: Share Purchase Agreement should specify clearly the details of shares allocated to the party along with its scope in market.
  • Value of shares
  • Type of shares being allocated
  • Terms and conditions of allocation of shares
  • Payment Clause
  • 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.

Is Share Purchase Agreement legally enforceable?

In order to make an agreement legally enforceable, it must fulfill certain legal conditions such as an offer and acceptance of that offer. Share Purchase agreement reflects the understanding between the parties by where one party disburse the shares and other party accept the same and do the payment that makes it legally enforceable.

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 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 Share Purchase agreement?

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

  • 3. What is difference between Share Purchase Agreement and Share Repurchase agreement?

    The process of selling company shares to third person is sale purchase but process of repurchasing sold shares come under Share Repurchase agreement. Companies usually repurchase shares when I has enough cash to buy the same while still covering operating expenses.

  • 4. Why to get Share Purchase 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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