Selling Or Buying Business Assets? You Need A Contract

When you’re selling or buying business assets in New Zealand, it’s crucial to have the appropriate contract in place to ensure the process is seamless. This is known as an Asset Sale Agreement.

Business assets typically refer to the tangible assets of a company, which can range from specific machinery to equipment.

So, what exactly is an Asset Sale Agreement and why is it necessary in New Zealand?

What’s Included In An Asset Sale Agreement?

Whether you’re the purchaser or the vendor, an Asset Sale Agreement outlines the terms agreed upon by both parties regarding:

• The assets being acquired
• The purchase price of the assets
• The method of payment
• Responsibility for the assets at various stages

…and any other specifics you wish to include!

For instance, imagine you are acquiring some excavation equipment for your business from another company.

To facilitate this, you require a contract that clearly defines how this transaction will be conducted to ensure all aspects are accounted for. This is particularly important if you’re investing a significant sum — you’ll want to ensure that the transaction proceeds without any issues.

An Asset Sale Agreement helps to prevent any future misunderstandings or disputes, as the terms of your agreement will be formally documented.

Typically, the party disposing of the assets will draft the Asset Sale Agreement (though it can also be the other way around). Consulting with a knowledgeable lawyer can guide you through the typical concerns associated with asset sales in New Zealand.

However, be cautious not to confuse the purchase of individual business assets with the acquisition of an entire business, including all its assets. The latter is a more intricate process, requiring a Business Sale Agreement. If you’re uncertain about the type of contract you require, don’t hesitate to contact us for guidance.

Need Help With An Asset Sale Agreement?

If you require assistance with an Asset Sale Agreement in New Zealand, please don’t hesitate to get in touch!

You can reach our friendly team on 0800 002 184 or at [email protected]. You can have a complimentary discussion with one of our legal consultants to explore your options.

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