Critical Components of the Purchase Agreement when Buying and Selling

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

Are you thinking of buying or selling a business? Within the actual purchase agreement, representations and warranties are one of the biggest causes for post-closing disputes, but they are often overlooked. This section is where the parties make factual statements and the condition of their business as of a certain date. Typically, sellers give more exhaustive representations than buyers, which makes sense since the seller is making representations on the business as a whole. The buyer would make representations as to performing their obligations - buying the business.

When going through the process, be careful and understand what is written in this section and the indemnification provisions as they do interplay with each other. 

Read the full store from Medtrade.

0 comments

Back to Top