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Sales Agreement
Sales agreement is a major document needed in important and strategic financial transactions. These transactions may involve buying a business, business assets, corporation stocks, real property, etc.
A single major financial transaction has a long-term effect on both parties involved in it. Thus, it is but necessary that every minutest detail regarding the business deal be official. The sales agreement is the document that makes the deal of both parties official.
In the sales agreement, the terms and conditions of the financial transaction is written down and agreed by both parties.
For example, in real estate sales agreement, all of the condition agreed about the sale, the property’s technical details up to the chattels thrown in must appear on the sales agreement document.
The price of purchase agreed upon by both parties is significant information that must be placed on the document of sales agreement. It must be stated both in numerical figures and in words. If there has been an agreed upon deposit price or earnest money must also be put down. The down payment and the final remittance clauses should not be forgotten, too.
Along with the monetary agreements are the exact details regarding how and when the monies will be exchanged or transferred.
The sales agreement will be considered legally binding once both parties in the contract affix their respective signatures.
A sales agreement must be accurate and contain all the terms and conditions of purchase. However, if something has been forgotten or there would be any changes from the conditions first agreed upon, the main document can be attached with an addendum.
Everything that both parties have settled down must be defined in a sales agreement. List of items needed:
- The Names of the parties involved (Seller and Buyer) and the Business
- Some Background Information about the parties
- A checklist of the Assets being sold
- The exact price of Purchase and Assets Allocation
- A Covenant or Agreement Never to Compete
- Whatever adjustments needed
- The Payment Terms and other Terms of the Agreement
- Inventory list incorporated in the deal
- Observance of the State’s Bulk Sales regulations
- Any Seller’s Representative and Warranties
- Any Buyer’s Representative and Warranties
- Establishing the rights on gaining access to information about the business
- Establishing the way of running the business before closing the agreement
- Other Contingencies
- Probabilities of the seller continuing on as consultant
- Fees to be settled, together with brokers fees
- Closing Date for the agreement
In drafting and finalizing a sales agreement document, it is advisable to have an attorney review it. We have Los Angeles corporate attorneys who are willing to help you.
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