Witness Initial Asset Purchase Agreement Template For Free

An asset purchase agreement allows a buyer to pick the precise assets they want to purchase and identify any liabilities they wish to assume. Thus, the asset purchase agreement must describe in detail the assets to be purchased, as well as the rights and responsibilities of both parties.

In an asset purchase, the buyer agrees to purchase specific assets and liabilities. This means that they only take on the risks of those specific assets. This could include equipment, fixtures, furniture, licenses, trade secrets, trade names, accounts payable and receivable, and more.

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.

In making an asset sale, the seller remains as the legal owner of the entity. At the same time, the buyer purchases individual assets of the company, such as equipment, licenses, goodwill, customer lists, and inventory.

What is included in your contract will differ based on your circumstances, but a starting agreement should include: Party information. ... Definitions. ... Purchased assets. ... Purchase price. ... Additional covenants. ... Warranties or disclaimers. ... Indemnification. ... Breach of contract provisions.

The asset purchase agreement is typically prepared by the buyer's lawyer. However, it is important to have the agreement reviewed by a business lawyer to ensure that all assets are properly transferred and that the purchase price is fair.

What Are Examples of Assets? Personal assets can include a home, land, financial securities, jewelry, artwork, gold and silver, or your checking account. Business assets can include such things as motor vehicles, buildings, machinery, equipment, cash, and accounts receivable.