A comprehensive sale agreement is crucial to protect both parties. Key elements typically include:
- Purchase Price: Clearly state the agreed-upon amount and payment terms. - Assets and Liabilities: Detail what is included in the sale, such as equipment, inventory, and intellectual property. - Warranties and Representations: Include assurances about the business’s condition and performance. - Non-Compete Clause: Prevent the seller from starting a similar business within a certain timeframe and geographic area. - Transition Support: Outline any agreed-upon support the seller will provide during the transition period.