Nothing is as disappointing as having signed an agreement that cannot back you up when you need it to. In most cases, the kinds of agreements we sign are not well defined and therefore in any event that it is needed, it may not be helpful. For instance, if it were to be used in court, anything that is vague benefits the party that did not draft the agreement. In this case, it will be your opponent. It is therefore important that you have a well-defined and helpful. For vendors, it is more than just a backup in court. It helps you define the warranty and refunds.
To avoid all this, use the asset purchase agreement. This is an agreement template that you can use in your purchase. It is well defined and can be easily customized. It has been drafted by an experienced professional and therefore covers all your areas of concern. What I love about this agreement is that it is easy to download and can be used right away. In addition, it is written in a way that it is easy to read and understand; it has subtitles and sections so that you can easily find the information you need. This saves both you and your client time, as you are able to quickly go over the agreement and sign.
Please note; ensure you read the agreement thoroughly before you use it. You do not want to sign saying that you agree to something you do not agree to. This goes to both the buyer and the seller. They say that knowledge is power. In this case it really is.
Some of the crucial point ever Asset Purchase Agreement template should have and each party should look for before signing are
- Asset Purchase Agreement detail: Parties Details, the template should ensure that the name of the two parties entering the sale agreement are clear stated
- Definitions of terms: agreement tend to use professional “legal” jargons that one might not be conversant with and thus this section of definition helps both parties understand each and every word used in the agreement
- Sale and Transfer of Assets: Closing. This details section shows the product, and complete transactions stated clearly.
- Representations and Warranties of Seller: any after sale services should be clearly stated including warranties so that in case of a claim there is a signed legal backup. This is more important in cases of assets purchase.