This crucial document outlines the terms and conditions associated with the sale, safeguarding both parties’ interests involved in the transaction.
Our provided Free Sale of Business Agreement Template is a comprehensive Word document that you can download, edit, and adapt according to your unique business needs.
1. DEFINITIONS AND INTERPRETATION
In this agreement, unless the context otherwise requires:
“Business” means [Name, location, and nature of the Business];
“Assets” means all assets and rights of the Business;
“Purchase Price” means [Purchase Price];
“Completion” means completion of the purchase and sale of the Business;
“Completion Date” means the date of this agreement;
“Seller” means [Seller’s Name] and “Buyer” means [Buyer’s Name].
2. SALE OF BUSINESS
The Seller agrees to sell, and the Buyer agrees to purchase the Business on the terms and conditions of this agreement. The sale includes all Assets, goodwill, and right to use the Business name.
3. PURCHASE PRICE AND PAYMENT
The Purchase Price is payable as follows:
4. ASSETS INCLUDED IN THE SALE
The Assets included in the sale of the Business are:
[A list of the assets including but not limited to inventory, equipment, intellectual property rights, licenses, leases, contracts, and customer lists].
5. EXCLUDED ASSETS AND LIABILITIES
The following assets are excluded from the sale:
[A list of the Excluded Assets].
Any liabilities of the Business shall remain the responsibility of the Seller unless otherwise agreed in writing by the Buyer.
6. TRANSITIONAL ARRANGEMENTS
[Details of any transitional arrangements, such as the transfer or retention of employees].
7. NON-COMPETE AGREEMENT
The Seller agrees not to engage in a similar business within [agreed radius] from the Business location for a period of [agreed period] from the Completion Date.
8. WARRANTIES AND REPRESENTATIONS
The Seller and the Buyer make the following warranties and representations:
[List of warranties and representations regarding ownership rights, financial standing, etc.].
9. DEFAULT AND TERMINATION
This agreement may be terminated if either party fails to comply with any material term or condition of this agreement and fails to correct the failure within [agreed period] after receiving written notice of the failure.
10. GOVERNING LAW
This agreement shall be governed by and interpreted in accordance with the laws of [state].
11. ENTIRE AGREEMENT
This agreement contains the entire understanding between the parties and supersedes any prior agreement or understanding relating to the subject matter of this agreement.
This agreement is signed by the parties on the date first above written.
Other Useful ContractsIf you found our Sale of Business Agreement Template helpful, there are other templates that might interest you. Navigating the world of business transactions can be complex and having these documents in place is necessary to ensure a smooth process.
One such template is the Transfer of Business Agreement Template. This is especially useful if you’re considering not just selling your business, but transferring ownership to another party. Much like the Sale of Business Agreement, it provides a roadmap for the transaction, outlining responsibilities and rights of both parties.
In addition, the LLC Business Agreement Template can be beneficial. If the business you’re selling is an LLC, or if you’re looking to form an LLC for your new venture, this template provides a basis for how your LLC will operate. It’s a necessary agreement that outlines details such as the division of profit and loss, management structure, member duties and more.
The Non-Compete Business Agreement Template is another useful tool in the process of selling a business. After selling, you may want to ensure that the buyer doesn’t set up a similar business that will compete with yours. This agreement prevents such situations and protects your interests.
Lastly, consider checking out our Termination of Business Agreement Template. Although not ideal, not all business transactions go as expected. Having a formal agreement in place that outlines how and under what circumstances the business agreement can be terminated is essential in protecting all parties involved.