Agreement For Sale Of Business Sole Proprietorship

1. The seller now owns and runs a business that is considered _____Stadt – There is no separate legal entity created when an individual business is created. The owner of the company is responsible for the company`s actions and commitments. Despite all the legal responsibilities imposed on the owner, the name of the business must not be the legal name of the owner. The company may have its own name. This is called “Doing Business As” or DBA. A contract for the sale of an individual business should clearly state that the previous owner`s commitments are not the responsibility of the new owner. For example, if the company owes money to its suppliers at the time of sale, the seller is responsible for the full payment of these debts. Individual owners are generally required to provide personal guarantees when loans are granted by businesses and credit institutions; the inclusion of these conditions in a buy-and-sell agreement excludes any risk of confusion. The buyer frees the seller from all obligations and obligations arising from the buyer`s activity after closing and keeps them unscathed. Similarly, the seller frees the buyer from all commitments and obligations arising from the seller`s activity before closing. Once the business structure is in place, the sale transaction for asset transfer can begin.

Property and equipment may include that the contract for the sale of an individual business should include a non-compete agreement that limits the time and place where the outgoing owner may engage in activities similar to those of the business it sells. This non-compete agreement is particularly important for an individual business, as customers, as a closely managed company, may have developed a working relationship with the previous owner and prefer to cooperate with it rather than with the incoming buyer. The seller must provide the buyer, on the reference date, with a guarantee of a possible charge or a pledge on the business land, which, in terms of form and content, is satisfactory to the buyer, specifying that the outstanding principal balance of such a guaranteed debt has been fully paid before or at the same time as the closing. 10. Debt relief. The buyer undertakes to take over the contracts listed in the schedule of the annexed property, Schedule A, and debts arising from the seller`s normal activity after the signing of this contract, but before the conclusion. The buyer is not liable for the obligations or obligations of any kind that are not specifically mentioned. The buyer frees the seller from any liability for the contracts and obligations that are taken there, provided that the seller is not in default at the time of the conclusion of these contracts or obligations. 1. Store sales. The seller undertakes to provide the transaction described above, including the rental to these premises, the value of the business as a current business, all rights of the seller in connection with its contracts, licenses and agreements, as well as all assets and real estate that are in possession and for the use of the seller and which possess and have been used in such a transaction in accordance with Schedule A , to acquire expenses and liabilities. , with explicit ownership excluded.

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