A Business Sale Agreement is a contract for the sale of a business, including appropriate terms regarding liability, confidentiality, and non-competition.
- Selling an existing business.
- Selling a portion of an existing business.
Commonly, entrepreneurs break into a market with a successful startup and then turn around and sell their businesses for a profit rather than continue to run it. In these cases, the parties to the sale must execute a particular type of Purchase and Sale Agreement known as a Business Sale Agreement.
A Purchase and Sales Agreement is a legal contract that, once executed, sets in motion some exchange of products, services, real estate, or other assets. This broad category of contracts can be used as a basis for nearly any transaction to take place. As a result, they can and should be crafted to provide an effective framework for a particular transaction based on the facts and circumstances of that specific exchange. The sale of an entire business or a portion of its operations is a complex transaction that requires careful planning. The parties to the exchange must consider how real property and intellectual property will be dealt with, how shareholders and employees may be impacted, and what should happen in the event that either party breaches the terms of the sale. Individuals selling companies may wish to negotiate non-compete agreements, non-disclosure agreements, or other terms and conditions that would ensure that their hard work in starting the company is adequately compensated for. This Business Sale Agreement addresses the common issues associated with the sale of all or part of existing business operations. This provides individuals involved in these complex transactions with a basic framework for the exchange and an idea of what is necessary to move forward with the sale.