Are digital assets covered in a business purchase agreement?

A North Carolina business purchase agreement typically includes due diligence. During due diligence, the buyer has the opportunity to explore the deal and investigate the business to be purchased. The buyer is usually allowed to terminate a business purchase agreement during the due diligence period simply by providing proper notice to the seller. Upon terminating a business purchase agreement during due diligence, the buyer is usually not entitled to a refund of a due diligence fee but might be entitled to a refund of a deposit. There are also several other termination options that could be included in a business purchase agreement. To avoid conflict and confusion, ideally, a contract should clearly articulate how it can be terminated. If you need assistance with a North Carolina business purchase agreement, you might consider consulting with a knowledgeable North Carolina corporate attorney. Good luck!

Due diligence is an important aspect of a business purchase agreement. Like due diligence in real estate transactions, in a business purchase, due diligence is the buyer's opportunity to verify material facts and circumstances. This is why, in many cases, the buyer will condition the offer to purchase upon due diligence. A prospective buyer should consider consulting with a knowledgeable attorney before executing a business purchase agreement.

A Business Purchase Agreement does not REQUIRE witnesses. However, witnesses, if unaffiliated and uninterested 3rd parties, witness the execution signatures on the Business Purchase Agreement, it may become important if a dispute arises between buyer and seller.

Business purchase agreements need to be in writing. It will protect you and each party. Let me know if you need assistance in drafting the agreement.

Many purchase agreements do include non-competes, which are typically geographically limited and limited in terms of duration. The implication for the seller is straight forward. As a practial matter, the buyer benefits from a non-compete because it limits competion from the seller for business within the community in which the buyer will operate following the purchase of the business, or competition from the seller over the same potential customers, which aids profitability.