Do You Need A Business Sale Agreement?

Buying and selling a business can be a complex process. When selling a business in New Zealand, it is crucial that you negotiate and sign a legally binding Business Sale Agreement with the purchaser of your business.

But what are Business Sale Agreements and what do they do for you in New Zealand?

Here’s what you need to know.

What Is A Business Sale Agreement?

A Business Sale Agreement is a legally binding agreement that you negotiate and sign with the purchaser of your business in New Zealand. It outlines the terms of the sale such as the purchase price, dispute resolution processes, and what assets are included in the sale.

Typically, the Business Sale Agreement is prepared by the seller of the business (and their legal advisers). The purchaser should ensure that a legal professional reviews the Business Sale Agreement before they sign it.

A Business Sale Agreement will generally include a list of warranties provided by both the buyer and seller. This guarantees certain conditions for the buyer and outlines any actions the seller does not wish to proceed with as part of the sale.

Why Do I Need A Business Sale Agreement in New Zealand?

As a seller, a Business Sale Agreement is essential to the sale of your business in New Zealand. It is important to ensure that this agreement is drafted accurately to confirm your rights to payment and to protect you from liability for any issues that may arise with the business after the sale.

What Is Included In A New Zealand Business Sale Agreement?

A Business Sale Agreement in New Zealand typically includes clauses regarding:

• Assets being sold

• Purchase price and payment methods

• Settlement

• Conditions precedent to the sale

• Obligations of the seller post-sale

• Warranties provided by both the buyer and seller

• Dispute resolution mechanisms

• Termination clauses

Need Help?

An experienced lawyer will be able to draft your Business Sale Agreement to ensure that the terms of your business sale in New Zealand are clearly set out for both parties, and that you’re protected in the event of a dispute.

At Sprintlaw, we specialise in drafting comprehensive, easy-to-understand, and user-friendly agreements for businesses operating in New Zealand.

Feel free to get in touch with us to begin the process for your Business Sale Agreement! Our friendly team can be reached at 0800 002 184 or at [email protected].

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