As a general rule, the buyer`s representative writes the sales contract. However, unless they are authorized by law to practice law, real estate agents generally cannot establish their own legal contracts. Instead, companies often use standardized form contracts that allow agents to fill gaps with sales specifics. This refers to the fact that you are able to arrange the payment, for example. B a mortgage or a loan. Some agreements may provide (for the benefit of the seller) that if you are unable to provide financing and cannot meet this requirement, you must provide proof from your bank confirming that your financing has been refused. If you are unable to provide supporting documentation, you may need to continue selling. For example, an insurance broker wants to sell his client list – the real estate agent`s overvalue – for $50,000. The buyer does so in the hope that the customers on the list will continue to use the buyer as an insurance broker. As a general rule, the seller introduces the buyer to the customer and indicates that the buyer is his successor to encourage customers to continue to take out buyer`s insurance. If the seller does not sign foreigners at the goodwill sale, he can simply open a shop across the street and continue to sell insurance. Of course, all existing customers of the company will cross the street and take out insurance from the seller with whom they already have a relationship. The buyer will have purchased goodwill for $50,000, which has been reduced to zero.
This is why non-competitive agreements are essential for the sale of goodwill and are also of great importance for sales of hard-selling assets. In essence, all the details of the transaction are defined in the purchase and sale agreement, so that both parties share the same understanding. Minimum conditions that are usually included in the agreement include the purchase price, closing date, the amount of serious money the buyer must deposit as a deposit, and the list of items that are included in the sale that are not included. To protect your business, it`s a good idea to know about these common and important agreements. The buyer will try to prevent the seller from creating a new competitive business that will damage the value of the business sold. The sales contract therefore contains restrictive agreements that prevent the seller (for a fixed period and in certain geographic regions) from recruiting existing customers, suppliers or employees and, more generally, from competing with the sale of the business. These restrictive alliances must be adequate in geography, size and duration. Otherwise, they may be in violation of competition law. In another example, a GSB is often required in a transaction in which one company buys another. Because the G.S.O.
defines the exact nature of what is purchased and sold, the agreement may allow a company to sell its tangible assets to a buyer without selling the naming rights attached to the transaction.