Buying and Selling: Critical Components of the Purchase Agreement

Home Blog Buying and Selling: Critical Components of the Purchase Agreement

Part I of the buying and selling series focused on representations and warranties when entering into a purchase agreement to sell a business. This part II of the series focuses on specifically the indemnification section of the purchase contract. This is another section of the purchase contract that is typically glossed over, but should be reviewed carefully. The representations and warranties let them know factual statements about the business. The indemnifications section spells out how claims can be made against the other party. Typically, a seller would more likely have a claim filed against them rather than the buyer. Claims could include items like governmental or PMB audits. The seller is making more representations and warranties about the business being sold while the buyer is simply paying for the business. 

Read the full story from Medtrade.

0 comments

Back to Top