Document background
The Business Purchase Agreement is a vital legal instrument used in Hong Kong for facilitating the sale and purchase of business enterprises. This document is essential when one entity wishes to acquire another's business operations, assets, and sometimes liabilities, whether as a going concern or otherwise. The agreement must comply with Hong Kong's legal framework, including the Companies Ordinance (Cap. 622), Transfer of Businesses (Protection of Creditors) Ordinance (Cap. 49), and various other regulatory requirements. It typically includes detailed provisions covering purchase price, payment mechanisms, warranties, indemnities, employee transfers, intellectual property rights, and operational continuity. The document is particularly crucial in Hong Kong's dynamic business environment, where complex commercial transactions require careful consideration of both common law principles and specific statutory requirements. The agreement serves as the primary document governing the relationship between buyer and seller throughout the transaction process and often forms the basis for post-completion obligations and dispute resolution.
