An asset sale contract is a contract that includes all the conditions related to the purchase and sale of a company`s assets and lowers them. By selling assets, the buyer receives only the tangible or intangible assets of a business, not the corporation or liabilities of the business. In addition, in the event of a sale of assets, the buyer is not necessarily required to purchase all the assets of the enterprise and can only acquire certain valuable assets, bypassing depreciable or risky assets that may be subject to future liability. Covenants are sub-agreements under the asset sale agreement. For example, the seller may promise not to compete with the buyer for a certain period of time in a geographic location. Depending on the transaction, Covenants vary widely. While there are disadvantages to an asset sale contract, there are several obvious advantages, including: it is extremely useful to address the buying/selling power of real estate assets, a process where an obstacle can arise for either party and if you do not want to miss the signing of the contract; but it is also useful if you live in a foreign country, or if you cannot be present for health reasons. The exemption protects buyers and sellers in the event of a dispute. It describes the financial damage a party pays to the winning party and under what circumstances, including attorneys` fees, court fees and more.
Here are parts of an asset sale contract that you can include in your document. At Antonoplos & Associates, we don`t think you`ll need a business lawyer for every decision you make. However, consulting an experienced business lawyer is an invaluable resource for your business for two reasons. First of all, a good business lawyer will be able to provide advice on many topics, for example. B on the revision of the terms of an office or storefront lease agreement, on the design of contracts establishing commercial partnerships or on the revision of contracts for the sale of assets. Overall, involving a business lawyer in general decision-making ensures that your company is not able to make potentially catastrophic deals. Second, by discussing an important part of your case with a business lawyer, that lawyer is better equipped to represent you in the event of a dispute. For these reasons, advising and involving a business lawyer in your company`s overall decision-making can even save your business money.