The terms – or requirements – of the conclusion may vary depending on the transaction. As a general rule, however, these requirements include the delivery of the purchase price, the authorization of the sale by third parties, including the public authorities, and when the seller had to make modifications or repairs before the sale. Commercial assets relate to all valuable assets of a business, such as real estate or vehicles, as well as intangible assets such as intellectual property. For a variety of reasons, an entity may decide to sell its assets to another company. However, before a sale can be made, the owner of a business must enter into an asset purchase agreement (APA) which is a legal document governing the sale and transfer of assets. Learn more about asset purchase agreements, what they contain and where to find more information. The contract will indicate the names of the seller and buyer, as well as say that they both have the rights and ownership power to participate in the transaction. If there are shareholders on both parties, they should also be mentioned in the contract with a statement that they fully agree with the transaction. The contract should list all the details of the transactions and discuss potential scenarios related to the transfer of assets. All intangible assets should also be mentioned, including the following: In general, the person selling the assets is the one who prepares an asset purchase contract (but it can also work the other way around!). If you are talking to an experienced lawyer, they will be able to guide you through the frequent topics you will need to think about when selling assets. When a contract is considered fundamental to the business when buying assets, the purchaser may insist that the closing of the asset sale be conditional on the renewal of the contract.
In this case, you can use a novation agreement to ensure that all three parties accept this change. In the event of a sale of assets, the assets of one company are sold to another party, the acquirer. This includes tangible assets such as equipment and inventory, as well as intangible assets such as the good s or business of your company, their intellectual property (IP) and customer lists. This article explains what an asset sale is, how it works in practice and what steps need to be taken to sell business assets.