Sale Purchase Agreement

The Bigger Picture In Selling Your Business

The Sale Purchase Agreement (also variously known as Purchase of Business Agreement; Business Sale Agreement; Business Purchase Contract; and Business Transfer Agreement) is a business sale and a business purchase contract specifying and detailing the purchase of a business by a willing buyer from a willing seller. The Sale Purchase Agreement (SPA) outlines all details of the sale, such as:

  • The business assets to be transferred
  • The valuation
  • The amount (purchase price) to be paid for the business
  • Payment terms, milestones, and deadlines
  • The arrangements on completion of the business sale
  • The transfer of business contracts
  • The outgoings and other payments between the seller and the buyer
  • Seller’s warranties
  • Post-completion rights and obligations (for both parties)
  • Dispute resolution and arbitration protocol
  • Confidentiality
  • The closing date, location, and signatures page

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