Buying and selling a business or an asset is a business decision. Some businessmen negotiate the sale of their businesses with the mediation of commercial brokers – however, a majority of them do not. Asset or Business Purchases is an important deal that requires the protection of a contract or an agreement.
An Asset Purchase Agreement is a contract that formalizes the transfer of ownership of the assets of a company from the seller to the buyer. This typically includes the terms and conditions of the sale, the sale price, disclaimers, warranties, and other optional clauses that protect the interests of both the buyer and the seller. Hundreds of Purchase Forms can be found online but not all of them cover the most critical information that needs to be outlined in a Purchase Agreement Form.
Agreement of Purchase and Sale of Business Assets
Model Asset Purchase Agreement Sample
Business Asset Purchase Agreement
Asset Purchase Agreement Restaurant in PDF
Bill of Sale Asset Purchase Agreement
Asset Sales Vs. Business or Stock Sales
An Asset Purchase or an Asset Sale is when individual assets or liabilities are purchased. The buyer may choose which assets he wishes to buy and which liabilities he does not wish to have. A Stock Sale or a Business Purchase, meanwhile, is the buying of the owner’s share of a corporation.
Why You Need an Asset Purchase Agreement
Verbal Agreements just won’t do when buying or selling assets. Having a written contract creates a formality of the transaction between both parties and can provide the information that has not been previously discussed to avoid misunderstandings or disputes down the road.
Outlines the Details
An Asset Purchase Agreement has to contain the necessary details of the negotiation: prices, quantities, order dates, client information, delivery date, delivery time, and payment terms to guarantee proper execution of the contract and to ensure the commitment of the deal between both parties.
Serves as a Reference
Asset Purchase Agreements are a form of contract that are legally binding and provide protection to both the buyer and the seller. A written agreement serves as reference for disputes and can be used as evidence or a basis for decisions during disputes.
Hotel Asset Purchase Agreement
Asset Purchase Agreement Checklist
Short Form Asset Purchase Agreement
Simple Asset Purchase Agreement Format
Corporate Asset Purchase Agreement
What to Include in an Asset Purchase Agreement
Names of the Parties Involved
An Asset Purchase Agreement should contain the complete names and addresses of both the buyer and seller. Make sure that the names indicated are correct and that all parties involved are listed down in the contract to avoid having one party sneak away from the contract.
List Down the Items Included in the Sale
List down the items included in the sale, such as business names, logos, business records, licenses, patents, trademarks, trade secrets, physical assets, and other items required for the business to carry on. Physical assets and their quantities should also be itemized in the contract.
Provide Specific Sale Terms and Resolution Terms
Indicate the total amount of the sale, the mode of payment, terms of installment, amount of down-payment given, and if payments will be issued via cash, check, or electronic transfer. A clause that indicates a means of resolution for any disputes may also be included in the contract.
As soon as all parties have fully read and understood the agreement, they are required to sign the document along with the date and the signatories’ complete names and titles.
Multiple copies have to be signed and notarized by a notary public.
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