Home Q&A Forum What are common clauses in purchase agreements?

Business Contracts

Purchase Agreement

California

Asked on Oct 30, 2023

What are common clauses in purchase agreements?

I am in the process of purchasing a business, and I am looking for more information on the common clauses in a purchase agreement. I need to understand what is typically included in a purchase agreement so that I can make sure all the necessary terms are included in the document. Additionally, I want to make sure that I am not missing out on any important provisions or language that could be beneficial to me.

Answers from 1 Lawyer

Answer

Business Contracts

California

Answered 899 days ago

The purchase agreement includes essential clauses such as the identification of parties, a detailed description of the property or assets, the specified purchase price, payment terms, closing date, representations and warranties, indemnification provisions, details regarding default and remedies, confidentiality agreements, and termination conditions.

Use of the ContractsCounsel Q&A Forum does not create an attorney-client relationship between User and any Lawyer User. The Forum is not a substitute for legal advice from a lawyer but is intended to be educational and to help the user determine if legal services are necessary. The Forum, Content, and communications on the Forum do not constitute legal advice.

Meet some lawyers on our platform

Daniel R.

312 projects on CC

CC verified

View Profile

Ryenne S.

953 projects on CC

CC verified

View Profile

Lori B.

190 projects on CC

CC verified

View Profile

Stephen R.

15 projects on CC

CC verified

View Profile

What are risks without a purchase agreement?

I am considering purchasing a business and have been asked to sign a purchase agreement. However, I am unsure if this is necessary and would like to understand the potential risks of not having a purchase agreement in place. I want to ensure that I am making a well-informed decision and have the necessary protections in place.

5.0 (18)

Merry K.

Answered Nov 28, 2023

Purchasing a business without a binding agreement would be extremely risky (and, I'm sorry to be blunt, but extremely foolish). For example, without an agreement in which the seller is responsible for debts incurred prior to the sale, creditors could come after you.

Read 1 attorney answer>

Business Contracts

Purchase Agreement

Washington

Asked on Nov 3, 2023

Are purchase agreement renewals common?

I am in the process of purchasing a business and have been presented with a purchase agreement by the seller. The agreement includes a clause that seems to imply that the agreement can be renewed. I am curious to know if this is a common practice, and if so, what are the implications for me as the buyer?

5.0 (18)

Merry K.

Answered Dec 15, 2023

I'm not 100% sure what you are asking, but in negotiatons of purchases of businesses, business real estate, and personal real estate, it's not unusual to sign amendments extending the date by which an agreement must be made, or by which closing will occur. There can be many, many reasons for this, but generally, at least in my experience, both parties must agree in writing to any extensions of any sort of dates or deadlines. Here are two very common reasons a purchase and sale agreement may need to be extended: (1) Obtaining financing or (2) Obtaining an inspection I hope that helps! Best wishes, Merry

Read 1 attorney answer>

Real Estate

Purchase Agreement

California

Asked on Sep 5, 2021

seller is a divorced man whose ex lives across street. She turned him in for not permitting a deck. Court applied restraining orders on both. seller had plans drawn and submitted but pandemic hit, He is in financial crisis and has a buyer for home whose bank has agreed to lend . seller has paid all violation fees but county is slow in helping him. he is evacuated from Caldor fire with his other home. Seller needs to due a subordination and let sale happen while county reviews his plans and inspects. Is there anything else he can do? California ..e

code violation paid in full but County is not open and working from home. have not been able to handle this issue in timely manner has been 2 1/2 yrs since first submitted drawings . he is not permitted to go in the area due to a nasty divorce and wife living across street..he also is diabetic and has been hospitalized and needs medicine not covered by insurance

View Donya G.

4.9 (61)

Donya G.

Answered Sep 24, 2021

You will need an attorney to advise you, as such, you will need to post your project on the website Here are the steps you need to take to accomplish this 1. Post the job you need to get accomplished – for example “ I am looking for a California attorney to assist me in the sale of my property and to help me get the county to approve the sale -------------“ 2. Once posted, attorneys on the website that are interested and qualified will respond to your posting 3. Choose an attorney/s based upon their qualifications and cover letter to have a quick call so that you can decide who you would like to hire. 4. After talking with attorneys, choose who you will decide to proceed with. Remember to discuss the cost of the project as well as how long it will take to be completed as well as when payments will be made. 5. Once you have decided who to hire, click “HIRE” and that attorney will now be hired by you. Donya Gordon, Esq.

Read 1 attorney answer>

Business

Purchase Agreement

California

Asked on Oct 4, 2022

When asset purchase agreement vs. stock purchase agreement?

I am considering buying a business and I'm not sure what type of legal document I should use. I think I want to buy the business but I'm not sure what comes with that. The deal size is ~$100k and it is a printing company.

View Christopher M.

4.9 (8)

Christopher M.

Answered Oct 7, 2022

A stock purchase agreement only deals with the sale of stocks (which I know sounds a little obvious). The practical effect of which is you would own a percentage share of the company if that company is a corporation. If you used a stock purchase agreement the company would remain intact as a legal entity that you would have control over. If the company isn’t a corporation, or you’re not looking to keep the company intact, an asset purchase agreement would be you purchasing the assets of the company (up to and including the name and place of business) without necessarily taking control of the legal entity itself. Really which ever one you use they can both be drafted to accomplish your goals and more information would be needed to assess which one is right in your specific situation.

Read 2 attorney answers>

Real Property

Purchase Agreement

California

Asked on Oct 31, 2023

What happens if a purchase agreement expires?

I recently entered into a purchase agreement for a property with a seller. The agreement had a specific timeline for when the purchase needs to be completed, but that timeline is quickly approaching and the purchase has not yet been completed. I am unsure of what happens if the purchase agreement expires and I would like to get more information from a lawyer on the potential implications of the agreement expiring.

View Sarah S.

5.0 (17)

Sarah S.

Answered Nov 3, 2023

As long as you have an accepted offer the contract is valid and enforceable, regardless of the purchase agreement date; However, if there is a termination clause in the agreement or any language that might trigger termination after expiration, then the contract might be invalid. You need a lawyer to thoroughly review the contract.

Read 1 attorney answer>

Freelancers & Creators

Small Businesses

Startups

All of the Essentials:

Extra Help When Needed:

Basic LLC Formation

Premium LLC Formation

What are common clauses in purchase agreements?

Answers from 1 Lawyer

Sarah S.

Daniel R.

Ryenne S.

Lori B.

Stephen R.

People Also Asked

What are risks without a purchase agreement?

Merry K.

Are purchase agreement renewals common?

Merry K.

Donya G.

When asset purchase agreement vs. stock purchase agreement?

Christopher M.

What happens if a purchase agreement expires?

Sarah S.

Ask a Question

California Business Contracts lawyers by city

Find lawyers and attorneys by city