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Buy And Sell Agreement
"I need a Buy and Sell Agreement for the purchase of a small manufacturing business in Ontario, including machinery and equipment valued at $2.5M, with a planned closing date of March 15, 2025, and requiring ongoing technical support from the seller for 3 months post-closing."
1. Parties: Identifies and provides full legal details of the buyer and seller
2. Background: Contextual information about the transaction and the parties' intentions
3. Definitions: Defines key terms used throughout the agreement
4. Purchase and Sale: Core transaction details including the assets/shares being sold and purchase price
5. Payment Terms: Structure and timing of payments, including any deposits or installments
6. Closing: Details of when and how the transaction will complete, including conditions precedent
7. Representations and Warranties: Statements of fact and promises made by both parties about their capacity and the asset(s)
8. Covenants: Ongoing obligations of the parties before and after closing
9. Indemnification: Protection against losses arising from breaches or misrepresentations
10. Termination: Circumstances under which the agreement can be terminated and consequences
11. Dispute Resolution: Process for resolving any disputes that arise
12. General Provisions: Standard legal clauses including governing law, notices, and amendments
1. Due Diligence: Used when buyer requires a formal investigation period of the assets/business
2. Employee Matters: Required when the sale involves transfer of employees
3. Intellectual Property: Needed when IP assets are part of the sale
4. Real Estate: Include when real property is part of the transaction
5. Environmental Matters: Required for sales involving industrial assets or potential environmental liabilities
6. Non-Competition: Include when restricting seller's future business activities
7. Transition Services: Used when seller will provide post-closing support
8. Earn-out Provisions: Include when part of purchase price is contingent on future performance
1. Schedule A - Asset List: Detailed inventory of all assets being sold
2. Schedule B - Purchase Price Allocation: Breakdown of how the purchase price is allocated among assets
3. Schedule C - Excluded Assets: List of assets specifically excluded from the sale
4. Schedule D - Assumed Liabilities: Details of any liabilities buyer is assuming
5. Schedule E - Required Consents: List of third-party consents needed to complete the transaction
6. Schedule F - Encumbrances: List of any liens, charges or encumbrances on the assets
7. Schedule G - Material Contracts: List of important contracts being assigned to buyer
8. Appendix 1 - Closing Checklist: List of all documents and actions required for closing
9. Appendix 2 - Form of Bill of Sale: Template for the formal transfer document
Authors
Retail
Manufacturing
Technology
Real Estate
Professional Services
Healthcare
Hospitality
Construction
Agriculture
Transportation
Energy
Mining
Financial Services
Education
Entertainment
Legal
Finance
Mergers & Acquisitions
Corporate Development
Operations
Risk Management
Compliance
Business Development
Executive Leadership
Commercial Operations
Chief Executive Officer
Chief Financial Officer
Chief Legal Officer
General Counsel
Corporate Lawyer
Business Development Manager
Mergers & Acquisitions Director
Finance Director
Contract Manager
Commercial Director
Business Owner
Operations Manager
Risk Manager
Compliance Officer
Due Diligence Specialist
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