If you would like more information about the share purchase agreement, please contact us. THIS SHARE PURCHASE AGREEMENT (the “Contract”) is done and in that [entry date] (the “execution date”), essentially, the sales contract spells out all the details of the transaction, so that both parties share the same understanding. Minimum conditions that are usually included in the agreement include the purchase price, closing date, the amount of serious money the buyer must deposit as a deposit, and the list of items that are included in the sale that are not included. The buyer should therefore avoid these qualifications which limit the seller`s liability, as this would not lead to a transfer of the risk of compensation from the seller to the buyer. After the conclusion of the sales contract, the sales contract remains an important reference document, as it covers the operation of a possible contract and contains restrictive agreements, confidential commitments, guarantees and compensation, all of which can remain very relevant. The buyer will try to prevent the seller from creating a new competitive business that will damage the value of the business sold. The sales contract therefore contains restrictive agreements that prevent the seller (for a fixed period and in certain geographic regions) from recruiting existing customers, suppliers or employees and, more generally, from competing with the sale of the business. These restrictive alliances must be adequate in geography, size and duration. Otherwise, they may be in violation of competition law. Employees are usually another point of contention when negotiating an asset purchase. When a company`s assets are sold to a new buyer, all employees become, in accordance with the law, the buyer`s successors. This means that all staff liability, such as work history, leave pay, severance pay and severance pay, will be transferred to the purchaser. If the buyer wishes to terminate an employee purchasing after 6 months, the buyer must pay the employee`s termination salary for the entire duration of the employee in the previous company.
In the absence of provisions to protect the buyer, the buyer may have to pay a large bill as a redundancy payment to a worker. As a result, a buyer generally requires the seller to terminate the employment of all employees with the company effective on the reference date. The buyer requires the seller to pay the employees all legal rights to the termination, such as termination fees, severance pay and accumulated leave pay. The purchaser will then offer employees employment under the same conditions as the previous job. Employees begin working with the buyer`s deadline and the buyer will not be responsible for staff until that day for leave, termination and redundancy pay. Since the seller is debited from a high payment to his employees, the seller can increase the purchase price to reflect these debts. Since the interest of the seller and buyer is fundamentally at odds, the issue of employees generally becomes a controversial issue when the sale of assets is being negotiated. The purchase and sale of a business can be divided into two stages: it should be noted that it is possible that a signature and a closure take place in the same action and not at different times.