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Company Sales Agreement Template for United States

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Key Requirements PROMPT example:

Company Sales Agreement

"I need a Company Sales Agreement for selling my manufacturing business to a competitor, with specific focus on protecting our intellectual property and ensuring a smooth transition of our 200 employees, with completion targeted for March 2025."

Document background
The Company Sales Agreement is a fundamental transaction document used when one party intends to sell and another party intends to purchase a business entity in the United States. This comprehensive agreement is essential for both asset sales and stock purchases, detailing all aspects of the transaction including price, payment terms, representations and warranties, and post-closing obligations. It ensures compliance with federal and state regulations while protecting both parties' interests. The agreement typically requires careful review by legal counsel and may need to address industry-specific requirements, regulatory approvals, and various stakeholder interests.
Suggested Sections

1. Parties: Identification of buyer and seller entities, including full legal names and addresses

2. Background/Recitals: Context of the sale and brief description of the business being sold

3. Definitions: Key terms used throughout the agreement

4. Purchase and Sale: Core transaction terms including purchase price and assets/shares being sold

5. Consideration: Payment terms, including method and timing

6. Closing: Conditions precedent, closing mechanics, and timing

7. Representations and Warranties: Statements of fact and assurances from both parties

8. Covenants: Ongoing obligations of the parties

9. Indemnification: Protection against losses and liability allocation

10. Governing Law: Jurisdiction and applicable law

Optional Sections

1. Employee Matters: Treatment of employees post-closing - include when employees are being transferred

2. Intellectual Property: Special provisions for IP transfer - include when IP assets are significant

3. Environmental Matters: Environmental compliance and liability - include for companies with environmental exposure

4. Non-Competition: Restrictions on seller's future activities - include to protect buyer's business interests

Suggested Schedules

1. Asset Schedule: Detailed list of assets being transferred

2. Excluded Assets Schedule: Assets specifically excluded from the sale

3. Assumed Liabilities Schedule: List of liabilities being assumed by buyer

4. Material Contracts Schedule: Key agreements being transferred

5. Intellectual Property Schedule: List of IP assets being transferred

6. Real Property Schedule: Details of owned/leased property

7. Employee Schedule: List of employees and key terms

8. Disclosure Schedule: Exceptions to representations and warranties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Industries

Uniform Commercial Code (UCC): Primary federal law governing commercial transactions, especially Article 2 which regulates the sale of goods

Securities Exchange Act: Federal law governing securities transactions and requiring registration of securities sales if applicable

Hart-Scott-Rodino Act: Requires companies to file pre-merger notifications for large transactions to prevent antitrust violations

Federal Antitrust Laws: Including Clayton Act and Sherman Act, preventing monopolistic practices and protecting market competition

Internal Revenue Code: Federal tax regulations affecting the structure and tax implications of the sale

State UCC Variations: State-specific modifications to the Uniform Commercial Code that may affect sales agreements

WARN Act: Requires employers to provide advance notification of significant employment losses in certain business sales

ERISA: Governs employee benefit plans and their treatment in company sales

COBRA: Provides continuation of group health coverage that might otherwise be terminated due to business sale

Intellectual Property Laws: Including Patent Act, Copyright Act, Trademark Act, and Trade Secret laws affecting IP transfer in sales

Environmental Regulations: EPA regulations, state environmental laws, and CERCLA affecting environmental liabilities in business sales

Industry-Specific Regulations: Particular licensing and compliance requirements specific to the industry involved in the sale

Statute of Frauds: Common law requirement that certain contracts must be in writing to be enforceable

Contract Formation Requirements: Legal principles governing offer, acceptance, and consideration in contract formation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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