Buying a Business - The Business Sale Agreement
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17 May 2011
Over the years, lawyers have tried to simplify the process by drafting
a single legal agreement which covers all the various aspects of the
business and allows for the sale of the business to be dealt with in
one single swift transaction. But even today, buying or selling a
business is by no means an easy task and it can be a complex matter.
The basic areas that need to be considered remain largely the same for
most small businesses where there is a low value transaction.
Briefly, the business sale agreement will need to deal with the
1. The price and a breakdown of this dealing with the goodwill,
equipment and stock
2. A list of the assets that are excluded from the sale and to be
retained by the seller
3. VAT applicability
4. Employees - if there are any employees of the business they will
pass with the business under the TUPE regulations.
5. How payment of the price will be affected on completion
6. Whether any equipment or services which are leased or bought by the
business by HP agreement are to transfer with the sale.
7. Warranties to be given by the seller to the buyer, including and
limitations on them.
8. Any restrictive covenants to be applicable to the seller and/or the
9. Existing liabilities of the business - how these are to be dealt
with, including their apportionment where necessary.
10. If the premises occupied by the business are to be transferred
(freehold or leasehold).
As every business is individual, the business sale agreement needs to
be drafted and tailored to suit it perfectly. If you are contemplating
selling or buying a business, then get in touch with one of the lawyers
in our Commercial Department who will be happy to advise and assist.
Inam Ali is a Solicitor at Lawdit, specialising in
Commercial Property and Intellectual Property Law and can be contacted
via email: email@example.com
About the Author
Lawdit Solicitors offer services and
advice for litigation, commercial contracts, Intellectual Property and IT legal
agreements. We are experts in commercial law with a heavy emphasis on
Intellectual Property, Internet and e-commerce law. Lawdit is a member of the
International Trademark Association, the Solicitors' Association of Higher Court
Advocates and we are the appointed Solicitors to the largest webdesign
association in the world, the United Kingdom Website Designers Association.
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Article Published/Sorted/Amended on Scopulus 2011-06-02 12:11:27 in Legal Articles