ContractPurchase Agreement • December 23rd, 2013
Contract Type FiledDecember 23rd, 2013Buying or selling a business is an important event, especially for first-time buyers and sellers. The importance is reflected in the many legal documents used to record the terms of the deal, with the key document being the purchase agreement. Whether the deal is structured as an asset purchase or a stock purchase, the purchase agreement will contain the same types of provisions, which include (1) purchase terms, (2) representations and warranties, (3) closing conditions, (4) covenants, (5) indemnification, and (6) boilerplate. The purpose of this article is to explain the nuts and bolts of a purchase agreement.