Colorado Agreement for Purchase of Business Assets from a Corporation
Description
How to fill out Agreement For Purchase Of Business Assets From A Corporation?
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FAQ
?As is? refers to a term used in sales contracts where the buyer agrees to buy a product in its current condition, without legal recourse should the buyer discover a defect in the product after purchase.
The purpose of an "as is" clause is to force the buyer to rely upon its own investigation, rather than upon the seller's representations, in determining whether or not to purchase the property.
Hence, the effect of an ?as is? provision for the sale of the real property is that the buyer accepts the property in the condition that is visible or observable by him. Shapiro v. Hu, (1986) 188 Cal. App.
If a seller has to disclose so much, you may wonder what as-is clauses mean and what their purpose is. Put simply, an as-is clause is a statement that the buyer acknowledges and accepts that they are purchasing the property in its current condition and without any guarantees or warranties from the seller.
An asset purchase agreement is a legal contract to buy the assets of a business. It can also be used to purchase specific assets from a business, especially if they are significant in value.
After signing a letter of intent and completing due diligence, a business purchase agreement marks the official start to the legally binding transaction of a business. This agreement requires the buyer to purchase the business ing to the terms and price outlined in the agreement.
"As is" language in a realty sales contract does not shield a seller or his agent from liability for affirmative or, as in this case, negative fraud. "Generally speaking, such a provision means that the buyer takes the property in the condition visible to or observable by him. [Citation.]
In an asset sale, the warranties will cover the assets (and liabilities, if any) being acquired and may cover: Plant and machinery. Stock and work in progress. Contracts.