Purchase Agreement Definitions

Unless the parties agree otherwise, the sales contract will be cancelled if all of the above conditions are not met on an agreed date (the “Longstop” date). It is therefore essential that the G.S.O. determines how to determine when the conditions are met and when they can no longer be met. It should also indicate which of the parties is responsible for complying with the respective preconditions. The party concerned is required to make reasonable efforts to meet the relevant conditions up to the date of longstop. The buyer will try to prevent the seller from creating a new competitive business that will damage the value of the business sold. The sales contract therefore contains restrictive agreements that prevent the seller (for a fixed period and in certain geographic regions) from recruiting existing customers, suppliers or employees and, more generally, from competing with the sale of the business. These restrictive alliances must be adequate in geography, size and duration. Otherwise, they may be in violation of competition law. In the simplest form of a sale in which a business for sale is 100% owned by a single person or parent company and purchased by a single buyer, there are only two parties to the agreement. However, additional parties may be involved if, for example. B, several shareholders of the company for sale are involved.

In these cases, each shareholder must enter into the sale agreement to sell his shares. A well-written sales contract should contain all relevant information from a transaction. It must be clear and concrete in order to avoid any misunderstanding about the different concepts. Let`s take this example: John and Anna want to buy a house. They fall in love with you, so they start negotiating with a broker. Everything looks good and they sign a sales contract. The agreement describes the following: after the conclusion of the sale and sale contract, the sales contract remains an important reference document, since it covers the operation of a possible contract and contains restrictive agreements, confidential obligations, guarantees and compensation, all of which can remain very relevant.

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