The share purchase agreement is a legal document that defines the conditions under which the shares are transferred to a company. It distinguishes between the sale of all shares of a company and a partial sale. There are at least two parties to this agreement: a sales company holding the title rights to the shares and a buying company. As a general rule, shares are transferred for cash. However, it is also possible to pay equity with shares, in-kind contributions or media. The last expected phase of an ATM process is called the sales contract or SPA. After all the due diligence and if a buyer has analyzed the actual state of the business for sale, it is finally time to represent the price of the contract and the sale price of the business. This is therefore the document that will be formalized in an authentic deed and which will ultimately be presented to a notary, including all the conditions of sale. Sales contracts can cover the sale of almost all types of goods. They are generally used for the sale of goods worth more than $500, but can be used for transactions smaller than these. The most common use of sales contracts are for the sale of a home, or other types of real estate. They are also widespread in the telecommunications industry.
The buyer is most often responsible, together with his legal advisors, for the preparation of the first version of the contract. However, there are exceptions, such as. B the process associated with the auction. In this case, a project is sent to the participants to make the document containing its modifications and offers. This article focuses on the share purchase contract. If you have acquired a property or intend to acquire a property, it is inevitable to obtain a sales contract ("SPA"). The question is who should design the GSB and what are the most important terms of an GSB? If more specific risks are identified during due diligence, they are likely to be covered by appropriate compensation in the sales contract, under which the seller promises to reimburse the buyer a book base for compensation liability. Difference between orders and sales contracts The contract consists of five main parts: (1) Transaction description; (2) the terms of the contract; (3) representations and guarantees; (4) liability restrictions; (5) conditions. Legal due diligence is part of the due diligence phase prior to the presentation of the mandatory offer.