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Sales agreement checklist
The sales agreement is the key document in buying the business assets or stock of a corporation. It is important to make sure the agreement is accurate and contains all the terms of the purchase. As a seller and a buyer, it would be a good idea to have an attorney review this document. It is in this agreement that you should define everything that the purchase of the business entails, including assets, customer lists, intellectual property and goodwill.
The following is a checklist of items that should be addressed in the agreement:
- Names of seller, buyer and business
- Background information
- Assets being sold
- Purchase price and allocation of assets
- Covenant not to compete
- Any adjustments to be made
- The terms of the agreement and payment terms
- List of inventory included in the sale
- Compliance with the bulk sales laws of the state
- Any representation and warranties of the seller
- Any representation and warranties of the buyer
- Determination as to the access to any business information
- Determination as to the running of the business prior to closing
- Contingencies
- Possibilities of having the seller continue as a consultant
- Fees, including brokers fees
- Date of closing
