When it comes to selling a business, one of the most important documents you will need is the business selling contract. This legally binding agreement outlines the terms and conditions of the sale, and protects both the seller and the buyer.
Here are some key components that should be included in a business selling contract:
Purchase Price: This section should clearly state the purchase price and how it will be paid (e.g. cash, financing, etc.). It should also outline any conditions that must be met before the sale is complete.
Assets and Liabilities: This section should detail the assets and liabilities that are included in the sale, such as equipment, property, inventory, employees, and any outstanding debts.
Representations and Warranties: This section outlines any promises or guarantees made by the seller regarding the business, such as its financial performance, legal compliance, and ownership of assets.
Closing and Escrow: This section should outline the closing process, including the date and location of the closing, and how the transfer of ownership will take place. It should also outline any escrow arrangements, such as holding funds in a third-party account until certain conditions are met.
Confidentiality and Non-disclosure: This section should outline the confidentiality and non-disclosure obligations of both parties, ensuring that sensitive information about the business is kept confidential.
Dispute Resolution: This section outlines how any disputes or disagreements will be resolved, such as through mediation or arbitration, rather than going to court.
Non-compete and Non-solicitation: This section should outline any restrictions on the seller`s ability to compete with the buyer or solicit its customers or employees.
By including these key components in your business selling contract, you can protect yourself and ensure a smooth sale process. It`s important to have this contract reviewed by a lawyer experienced in business sales to ensure it meets all legal requirements and protects your interests.