The Importance of Sales Agreements for Your Los Angeles Company
A sales agreement is a major document needed in important and strategic financial transactions. These transactions may involve buying a business, business assets, corporation stocks, real property, and the like.
As it is, a single major financial transaction has a long-term effect on two business parties involved in it. Thus, it is but necessary that even the smallest details regarding the deal be made official. The sales agreement is the document that makes the deal of both parties in a transaction formal and legitimate.
Contents of sales agreements
In the sales agreement, the terms and conditions of the financial transaction is written down and agreed upon by both parties.
For example, in real estate sales agreement, all of the conditions agreed about the sale, the property’s technical details, and up to the chattels (which include furniture, domestic animals, and the like) thrown in must appear on the sales agreement document.
The price of purchase agreed upon by both parties is significant information that must be placed on the document. It must be stated both in numerical figures and in words. Additionally, if there had been an agreed upon deposit price or earnest money, it must also be carefully noted down. The down payment and the final remittance clauses should not be forgotten, too.
Along with the monetary agreements are the exact details regarding how and when the monies will be exchanged or transferred. The agreement will be considered legally binding once the two parties in the contract have already affixed their respective signatures onto the document.
A sales agreement must be accurate and must contain all the terms and conditions of purchase. However, if something was forgotten or if there would be changes in the conditions first agreed upon, the main document can be attached with an addendum.
Everything that both parties have settled down must be defined in the agreement, with the list of items mentioned as follows:
- The names of the parties involved (the seller and buyer) and the business
- Some background information about the parties
- A checklist of the assets being sold
- The exact price of purchase and assets Allocation
- A covenant or agreement never to compete
- Needed adjustments
- The payment terms and other terms of agreement
- Inventory list incorporated in the deal
- Observance of the state’s bulk sales regulations
- Any seller’s representative and warranties
- Any buyer’s representative and warranties
- Establishing the rights on gaining access to information about the business
- Establishing the way of running the business before closing the agreement
- Other contingencies
- Probabilities of the seller continuing on as consultant
- Fees to be settled, together with brokers fees
- Closing date for the agreement
Why would you need a good lawyer when drafting a sales agreement?
In drafting and finalizing a sales agreement document, it is advisable to have a Los Angeles business attorney review it. This way, you are assured that no legal problems will arise from the said sales agreement. Fortunately, the Mesriani Law Group has a pool of expert Los Angeles corporate attorneys who are willing to assist you.
Our expert business law attorneys here in our Los Angeles-based law firm know the need for businesses to come up with effective and lawful sales agreements to avoid any legal disputes in the future.
If you are planning to have your own business agreement drafted and assessed to your satisfaction, call the Mesriani Law Group today at 1-866-325-4529 for a free consultation.