Business Sale Agreement Template

How to Write a Business Sale Agreement?

To write a legally binding Sale of Business Agreement, you will want to include the following sections:

1. The seller's and buyer's first and last names.
2. A description of the business.
3. Payment (including any furniture, equipment, machinery) and rules if the buyer fails to make future payments.
4. Listing of the sale at fair market value and an agreement to notify the IRS of the sale in a timely manner.
5. The closing date must be arranged to be no later than 10 days after the Business Sale Agreement is signed. The seller will also need to mail the buyer a Bill of Sale no later than 5 days after the agreement is signed.
6. A section detailing the conditions precedent in case one of the parties should fall through on their end of the agreement.
7. A statement that any actions were taken during or after the sale of the business will not be deemed unlawful in the state where the agreement is taking place.
8. Information detailing the lease or sublease of property by the seller and that the buyer agrees to finish the remainder of the lease or sublease and will pay any necessary fees.
9. A statement by the seller that there are no current litigation actions being taken against the business and that should any legal matters arise during the Business Sale Agreement it will the duty of the seller to resolve the matter and any incurred costs.
10. Confidentiality statement where both parties agree to not divulge any information regarding the details of the Business Sale Agreement during the sale and for 12 months after signing the agreement.
11. A statement that at no point will a third party beneficiary be added to the agreement without the prior approval of both parties.
12. Acknowledgment that any notices sent between the buyer and seller will be in written form and delivered via in-person or certified mail, and the sender will incur all mailing or delivery costs.
13. An agreement that they will enter into mediation should a dispute arise between the two parties.
14. Statement assuring that the seller will continue to maintain property insurance until the sale is completed and that the buyer will purchase property insurance after closing and will provide documentation of insurance to the seller.
15. The ability to terminate or remove any terms in the sale that are unenforceable and replace them with enforceable terms.
16. A final signature section where both parties agree to all the terms and conditions listed in the Business Sale Agreement Form.

Haven't found the form you are looking for? Take a look at these similar templates:

• Business Purchase Agreement;
• Business Contract;
• Offer to Buy a Business Template.