Asset Purchase Agreement Deposit

A non-competition clause between the parties is almost always included in the Purchase asset contract. A buyer won`t want to buy a business just to find that the seller creates a new store on the street, which competes with the one they`re buying. Therefore, the buyer`s investment is usually protected by a restrictive agreement in which the seller cannot participate in a competitive activity in a given geographical area (normally 25 miles) for a given period of time (usually 3 years); However, these conditions are negotiable. Depending on the circumstances, there may be some carve outs, for example. B an accountant who sells only part of his accounting practices specialized in a field. For example, it could cling to all of its accounting clients, but sell the clients for whom it works on audits. Whatever the agreement, the two sides must have a meeting of heads. Once a contract for the sale of assets has been concluded (signed by both the buyer and the seller), the Earnest Money deposit is due to the trust holder, who is normally the final lawyer. It must be sent by bank transfer on the first working day following execution. Buyers receive transfer instructions via email, but they are always encouraged to call the recipient before transferring money to make sure the account number is correct. The amount of the accounting is negotiable, but is usually 10% of the purchase price. The final lawyer/trust holder sends confirmation of the deposit to all parties once it has been received.

In this section, the seller promises that all outstanding debts of the company will be paid before the financial statements and that all assets will be sold freely and without charges. .