When you’re selling or buying business assets, you need to have the right contract in place to ensure everything runs smoothly. This is called an Asset Sale Agreement.
Business assets are often the tangible assets of a business. This could include anything from specific machinery to equipment.
So, what is an Asset Sale Agreement and why do you need one?
What’s Included In An Asset Sale Agreement?
Whether you are the buyer or the seller, an Asset Sale Agreement sets out the terms between the two parties on:
- What assets are being purchased
- How much the assets will be purchased for
- How payment will be made
- Who is responsible for these assets at different times
…and anything else you might want to add!
For example, let’s say that you are purchasing some excavation equipment for your business from another business.
To do this, you need a contract to set out how this transaction will work so that all your bases are covered. This is especially true if you’re purchasing the equipment for a lot of money — you’ll want to make sure that everything goes smoothly.
An Asset Sale Agreement prevents any misunderstandings or awkward questions later, as what you’ve agreed to will be formally set out in writing.
Generally, the person who is selling the assets will be the one to prepare an Asset Sale Agreement (but it can work the other way around, too!). If you speak with an experienced lawyer, they’ll be able to walk you through the common issues you need to be thinking about in asset sales.
However, be careful not to be confused if you’re buying a business in its entirety (along with all of its assets). This is a much more complex process, and you’ll instead need a Business Sale Agreement. If you’re not sure exactly what contract you need, feel free to reach out to us!
Need Help With An Asset Sale Agreement?
If you need help with an Asset Sale Agreement, don’t hesitate to get in touch!
You can reach our friendly team on 1800 730 617 or at firstname.lastname@example.org. From there, you can have a free chat with one of our legal consultants to discuss your options.
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