Sale of Business Agreement - with employees

SALE OF BUSINESS AGREEMENT - WITH EMPLOYEES

Summary

This Sale of Business Agreement may be considered when a person or entity sells portion or the whole of a business to another person, without selling any shares or members interest.

More information

Why do I need a Sale of Business Agreement?

A Sale of Business Agreement strives to set out the terms of the sale of a portion or the whole of a person’s or organisation’s business interests to another person. This agreement envisages the transfer of staff to the purchaser. In the event that the transfer of the business does not include staff, the Sale of Business Agreement – no Employees may be considered.  

What type of business should use a Sale of Business Agreement?

A person wishing to sell a business, such as a division of the organisation, a particular product-line, a service department and associated customer base, or the whole of the business operations to somebody else may use this Agreement.

Note that this Agreement does not cater for the transfer of shares in a company, or member’s interest in a close corporation. In such event, a Sale of Shares Agreement or Sale of Members Interest Agreement should be considered.  

What does the Sale of Business Agreement say?

The Agreement consists of:

• Parties
• Interpretation
• Sale of Business and Warranties
• Purchase Price
• Valuation of Stock
• Debtors and Liabilities
• Staff
• Insolvency Act Publication
• Cession and Assignment
• Delivery and Risk
• Resolutions
• Breach
• General

What does the Sale of Business Agreement look like?

• The agreement can be printed onto twelve A4 pages.

What do you need to do to use the Sale of Business Agreement?

• Read the document to ensure that it suits your requirements. Make changes as required.
• Complete the relevant details, such as the Seller and Purchaser’s names, the nature of the business and the purchase price. In particular, ensure that the clause specifying the manner in which the purchase price is to be paid is completed.
• Ensure both parties sign the agreement and receive a copy.

Also known as:

• Terms of Sale of Business
• Sale of Business Contract

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