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Home Q&A Forum Are third-party consents required in an asset purchase agreement?

Business Contracts

Asset Purchase Agreement

North Carolina

Asked on Oct 12, 2023

Are third-party consents required in an asset purchase agreement?

I am a small business owner looking to purchase a business asset from another company. I have been presented with an Asset Purchase Agreement and I am looking to understand the implications of the agreement. I am particularly interested in whether third-party consents are required in such agreements and what the process would be to obtain such consents.

1 Attorney answer

Answer

Business Contracts

North Carolina

Answered 276 days ago

N'kia N.

ContractsCounsel verified

Business Lawyer
Licensed in North Carolina
Free Consultation

Asset Purchase Agreements sometimes, but do not always, require third-party consent. For example, security agreements (like mortgage agreements) typically include clauses prohibiting the debtors from assigning or transferring the assets used to secure the agreement. Similarly, franchise agreements typically contain clauses prohibiting franchisees from assigning or transferring franchise assets. Parties whose assets are subject to these types of "no assignment" clauses will likely need to obtain third-party consent before they can sell those assets.

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