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The following assets and liabilities are normally included in the sale: Working capital. Cash (but only the amount necessary to pay expenses for a reasonable period of time) Accounts receivable. Inventory. Work in progress. Prepaid expenses. Accounts payable. Wages payable. ... Furniture & fixtures. Equipment. Vehicles.
A Sales Agreement is a legally binding contract between a buyer and a seller to outline the terms of a transaction. Either the buyer or seller can create a Sales Agreement to document the transaction.
At its most basic, a purchase agreement should include the following: Name and contact information for buyer and seller. The address of the property being sold. The price to be paid for the property. The date of transfer. Disclosures. Contingencies. Signatures.
Parts of a Business Sale Agreement Parties. The names and locations of the buyer and seller will be clearly stated in the first paragraph or two of the contract. ... Assets. The agreement will detail the specific assets being transferred. ... Liabilities. ... Terms. ... Disclosures. ... Disputes. ... Notifications. ... Signatures.
Documents Required to Sell a Business Depending on the type of business you are selling, you may need an Entity Sale Agreement or an Asset Sales Agreement. Furthermore, if you are financing part of the purchase price, you may need a Security Agreement for Asset Sale, a UCC Financing Statement and a Promissory Note.
All business contracts should include fundamentals such as: The date of the contract. The names of all parties or entities involved. Payment amounts and due dates. Contract expiration dates. Potential damages for breach of contract, missed deadlines or incomplete services.
Here are ten tips on how to write a business contract: Include All The Required Information. ... Make It Easy To Understand. ... Negotiate With The Decision-makers. ... Confirm All Verbally Agreed-upon Terms Are Included. ... Describe Situations And Criteria That Call For Termination Of The Contract. ... Include Detailed Payment Obligations.