Sale of Business Agreement – with employees
This Sale of Business Agreement can be used when a person sells their business, without selling the shares or members interest in the entity. The contract provides for the staff to be transferred with the sale of the business.
Sale of Business Agreement with employees
Summary This Sale of Business Agreement can be used when a person or entity sells portion or the whole of their business to a buyer, without selling the shares or members interest in the entity. The terms of this contract provide for the staff to be transferred together with the handover of the business.
Why do I need a Sale of Business Contract? A contract that governs the Sale of a Business sets out critical terms of the purchase, including the purchase price, the payment terms, a clarification of the components of the business that are to be included in the sale, and the identification of the staff that are being transferred. A business owner who intends to sell their business, whether it’s a division of the organisation, a specific product-line, a department, or the entire business operation can use this contract to give effect to the sale.
This agreement envisages the transfer of employees to the new business owner. If the sale of the business does not include staff then the Sale of Business Agreement – No Employees can be used.
Please note that this contract does not provide for the transfer of shares in a company, or members interest in a close corporation. In these instances a Sale of Shares Agreement or a Sale of Members Interest Agreement should be used.
What is included in the template Sale of Business Agreement with Employees? The standard terms of this contract consist of: parties; interpretation; sale of business; warranties; purchase price; valuation of stock; liabilities; debtors; staff; Insolvency Act publication; cession and assignment; delivery; risk; resolution; breach clause; general; annexures.
How long is the Sale of Business Agreement with Employees? This agreement can be printed onto eleven pages.
What is required to use this template Sale of Business Contract?
- Read the contract thoroughly to make sure that it meets your needs. The template contract is editable, so you can adjust it to your requirements.
- Complete the pertinent details: fill in the names of the Seller and Purchaser, detail the business being sold, add in the agreed purchase price, specify when the purchase price is to be paid.
- Once both buyer and seller of the business are satisfied with the terms then they can sign the agreement. Each party should get a copy of the final contract. It is also recommended that the signed agreement is scanned and stored electronically.
You may also be interested in: Confidentiality Agreements (It’s particularly useful to have an NDA signed before negotiations commence and sensitive information is revealed.)
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