Stock Purchase Agreement

A stock purchase agreement is a contract to transfer ownership of stocks from the seller to the purchaser. The key provisions of a stock purchase agreement have to do with the transaction itself, such as the date of the transaction, the number of stock certificates, and the price per share.

A 'share sale' typically involves the sale of the shares of a company. The legal contracting parties to the share sale agreement will be the actual shareholder of the company (ie, as the seller) who is disposing of his shares in the company, and the buyer who will become the new shareholder of the target company.

Name of company. Par value of shares. Name of purchaser. Warranties and representations made by the seller and purchaser. Possible employee issues such as benefits and bonuses. How many shares are being sold. Where and when the transaction takes place.

A real estate deal can take a turn for the worst if the contract is not carefully written to include all the legal stipulations for both the buyer and seller.You can write your own real estate purchase agreement without paying any money as long as you include certain specifics about your home.

This Stock Purchase Agreement (sometimes called an Share Purchase Agreement or SPA) sets forth terms of the sale and transfer of a company's stock to a purchaser. Stock Purchase Agreements are often used to effect the acquisition of a company through the purchase of the majority of stock in that company.

Name of company. Par value of shares. Name of purchaser. Warranties and representations made by the seller and purchaser. Possible employee issues such as benefits and bonuses. How many shares are being sold. Where and when the transaction takes place.

The share purchase agreement is the main document. It is normally drafted by the buyer although it is common for the seller to produce the first draft on an auction sale. Note. On an auction sale, the first draft of the share purchase agreement is generally prepared by the seller.

A stock purchase agreement is an agreement wherein the owner of shares of stock (the Seller) agrees to sell the stock to a buyer (the Purchaser). Generally, this type of form is used for the stock of a small corporation. Both federal and state securities laws govern the sale of stock.