Business Sale Agreement - Free Legal Template
This Business Sale Agreement outlines the terms and conditions for the sale and purchase of a business, including the purchase price, payment methods, and asset transfer details. It includes warranties from both the seller and buyer, conditions precedent for the sale's completion, and provisions regarding employees. The agreement ensures a clear framework for the transfer of business ownership.
BUSINESS SALE AGREEMENT
This Business Sale Agreement (hereinafter referred to as the "Agreement") is made and effective [effective date] (the “Effective Date”),
BY AND BETWEEN: | [seller name], with an address of [seller address], hereinafter referred to as the “Seller”. |
AND: | [buyer name], with an address of [buyer address], hereinafter referred to as the “Buyer”, collectively referred to as the “Parties”. |
The Parties hereby confirm that the addresses provided above are current and accurate for all correspondence related to this Agreement. Any future correspondence shall be sent to these addresses unless either Party notifies the other Party in writing of a change of address. Such notification shall be considered effective upon receipt.
Whereas the Seller wishes to sell [name of the business] (the “Business”) situated at [seller address], and the Buyer intends to purchase the Business.
Therefore, in consideration of the provisions of this Agreement, whose receipt and sufficiency are acknowledged, the parties entered into this Agreement on the following terms and conditions.
PURCHASE PRICE
The selling and purchase price of the Business to which both the parties agree is [SELLING PRICE]. The Purchase price consists of the following items;
The goodwill of the Business
Fixtures, plant, and machinery
Any stock the Business holds
All associated internet properties including domain names, websites and social media accounts
The addition clarifies that the specified selling price does not include any taxes, and the Buyer will be responsible for covering any applicable taxes associated with the purchase of the Business.
PAYMENT
The purchase price of the Business shall be paid by the Buyer in a single lump sum payment, by [mode of payment], as agreed upon by the Parties. The Buyer is responsible for covering any applicable taxes and fees associated with the transfer of the Business's assets.
CLOSURE
The Business and its related assets will be transferred to the Buyer on [date of handover] at the Seller's office, located at [seller address], upon the Buyer's full payment of the purchase price. All necessary sale-related documents will be executed during the closing.
WARRANTIES
The Seller makes the following assurances:
The Seller possesses the legal capacity to enter into this Agreement and execute the sale of the Business.
The Seller is the rightful and beneficial owner of the Business.
The Business and its associated assets, as described in this Agreement, are free from any encumbrances, penalties, defects, or legal issues, with no outstanding obligations or liabilities.
The financial status and accounts of the Business are sound, and there are no pending legal disputes or litigations against the Business to the best knowledge of the Seller.
All information provided concerning the Business in this Agreement is accurate to the best of the Seller's knowledge.
There are no third-party claims or interests in the Business.
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