A business purchase contract is drafted when the business of one individual is taken over by another individual. This may also include buying the shares of a company and holding a stake in the company. In a business purchase the assets and liabilities of the business are also transferred to the purchaser.
Sample Business Purchase Contract:
This business contract has been drafted by the Seller, Emma Watson, who is selling her business by the name of Dan Corporation Ltd located at 5689 Grant Road, New York, New Jersey 5678 to the Buyer, Tom Hanks at a price of fo$4 million keeping in mind the Business Ownership Act of the state of New Jersey.
The rules and regulations to be followed by both the parties are as follows:
- The total purchase price has to be paid by the Buyer at the time of closing the contract. The payment has to be made by check and in the name of the Seller. Once, the full payment is made only then Buyer will have the complete ownership of the business.
- All the liabilities of the business need to be cleared by the Seller before the contract closes. If the Seller is unable to do so, the liability amount will be deducted from the purchase price.
- The Buyer can hire new staff for the business but if he wants to change the staff completely, he has to give one month’s notice to the existing staff.
Emma Watson Tom Hanks
(CEO, Dan Corporation Ltd)
Dated: 20th November, 2010 Dated: 20th November, 2010