A business can be sold with its assets, liabilities, clients or without liability to a party. A Business Purchase Agreement is a contract used to transfer the ownership of a business from a seller to a buyer. It includes the terms of the sale, what is or is not included in the sale price, and optional clauses and warranties to protect both the seller and the purchaser after the transaction has been completed. A Purchase of Business Agreement can be used to buy or sell any type of business, including retail stores, industrial shops, restaurants and eateries, professional service offices, and many others.
Sample Format of Agreement to sell Business is given below.
AGREEMENT TO SELL BUSINESS
THIS AGREEMENT is made at ________ on this the ____ day of ____20__
Mr._____________ S/o. _____, aged about ________ years, residing at ____ herein after referred to as The VENDOR (which expression shall, unless it is repugnant to the context, mean and include his legal representatives, executors and assigns)
Mr_____________ S/o. _______, aged about ___years, residing at ____________ herein after referred to as The PURCHASER (which expression shall, unless it is repugnant to the context, mean and include his legal representatives, executors and assigns)
1. The Vendor is the absolute owner of ______ at _______ more fully described
Schedule A hereunder, on monthly tenancy, under the name and style of _______carrying on the business of selling _________since __. The said business consists of _____________________________.
NOW THEREFORE IN CONSIDERATION OF THE MUTUAL OBLIGATIONS AND UNDERTAKINGS CONTAINED HEREIN THIS AGREEMENT WITNESSETH AS FOLLOWS:
2. The Vendor shall sell the business of departmental store namely "Popular Stores" and the Purchaser shall purchase the Business. The Purchaser shall pay the sale consideration to the Vendor as agreed hereunder.
3. The Vendor shall sell and the Purchaser shall purchase the said Business
of the Vendor carried in the name and style of _____for a sale consideration of
Rs. ____. The Purchaser has paid an advance amount of _____by cash to the Vendor
and the Vendor
acknowledges the receipt of the same. The purchaser shall pay the balance sale consideration within ___ days from the date of execution of this Agreement.
4. The vendor shall execute a Deed of Assignment in favour of the purchaser conveying all his right, title, interest, good will, name and all other rights including the right to recover the debts on receipt of full consideration from the Purchaser.
5. The Vendor covenants with the purchaser that he shall not carry on similar business within a radius of ___ from the place of business of the purchaser herein.
6. The parties hereto agree to comply with all applicable laws, rules and
regulations relating to or affecting the performance of each of their
obligations hereunder and shall
secure and maintain in full force and effect all licenses, permits and authorisations from all statutory agencies to the extent the same are required or necessary for the performance of their respective obligations hereunder at all times during the term of this agreement.
7. Any dispute arising in between the parties shall be subject to arbitration and an arbitrator shall be appointed by both the parties by mutual consent.
All that piece and parcel of the business of ____________carried on in the name and style of ___________situate at _______ having a built up area of __________Sq.ft ( Description of the________ property)
IN WITNESS WHEREOF, the parties hereto affixed their signatures on the day,
and year mentioned herein above.
Name & Address
Name & Address