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Corporate Purchase Agreement for the United Kingdom

Corporate Purchase Agreement Template for England and Wales

A Corporate Purchase Agreement under English and Welsh law is a legally binding document that governs the sale and purchase of a business, whether through share acquisition or asset purchase. It sets out the terms and conditions of the transaction, including purchase price, payment terms, warranties, indemnities, and completion mechanics. The agreement incorporates various protections for both buyer and seller, and typically includes detailed schedules covering assets, employees, and other key aspects of the business being transferred.

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What is a Corporate Purchase Agreement?

The Corporate Purchase Agreement is the primary transaction document used when acquiring or selling a business in England and Wales. It's essential for both asset purchases and share acquisitions, providing comprehensive coverage of all aspects of the transaction. This agreement typically includes detailed provisions on purchase price, payment mechanisms, warranties, indemnities, and completion requirements. It's designed to protect both parties' interests while ensuring compliance with English law requirements for corporate transactions.

What sections should be included in a Corporate Purchase Agreement?

1. Parties: Identification and details of the contracting parties including registered offices and company numbers

2. Background/Recitals: Context and purpose of the agreement, including brief description of the transaction

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Sale and Purchase: Core transaction terms including what is being purchased and conditions precedent

5. Purchase Price and Payment Terms: Consideration, payment structure, adjustments, and payment mechanics

6. Completion: Timing, location, and mechanics of completion including actions required

7. Warranties and Representations: Seller's statements of fact about the business/assets being purchased

8. Limitations on Liability: Caps, time limits, and exclusions on warranty claims and other liabilities

9. Confidentiality: Obligations regarding confidential information and announcements

10. Governing Law and Jurisdiction: Application of English and Welsh law and jurisdiction of courts

What sections are optional to include in a Corporate Purchase Agreement?

1. Employee Provisions: TUPE provisions and employee-related warranties when staff are transferring

2. Tax Covenant: Protection against pre-completion tax liabilities in share purchase scenarios

3. Non-compete Provisions: Restrictions on seller's future activities and protection of goodwill

4. Data Protection: Provisions dealing with transfer of personal data and GDPR compliance

5. Post-Completion Obligations: Ongoing obligations after completion including transition services

What schedules should be included in a Corporate Purchase Agreement?

1. Schedule 1 - Properties: Details of real estate assets included in sale including leases

2. Schedule 2 - Intellectual Property: List of IP rights being transferred including registrations

3. Schedule 3 - Employees: Details of transferring employees including terms and conditions

4. Schedule 4 - Warranties: Detailed warranties given by seller covering all aspects of the business

5. Schedule 5 - Completion Obligations: Detailed list of actions required at completion by each party

6. Schedule 6 - Form of Tax Deed: Standard form tax covenant for protection against historic tax liabilities

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions




































Clauses




































Industries

Companies Act 2006: Primary legislation governing corporate transactions, including share transfer provisions, directors' duties and authority, and company registration requirements

Sale of Goods Act 1979: Governs transactions involving goods/assets, including terms about quality, fitness for purpose, transfer of title, and delivery obligations

Contract Law & Common Law Principles: Includes Law of Property (Miscellaneous Provisions) Act 1989 and Unfair Contract Terms Act 1977, governing contract formation and enforcement

Competition Act 1998: Regulates merger control provisions and prevents anti-competitive behavior in corporate transactions

TUPE Regulations 2006: Transfer of Undertakings (Protection of Employment) Regulations governing employee rights and transfers during corporate acquisitions

Data Protection Act 2018 & UK GDPR: Legislation governing personal data handling in due diligence and data transfer provisions

Value Added Tax Act 1994: Determines tax implications and VAT considerations in corporate purchase transactions

Bribery Act 2010: Sets anti-corruption provisions and compliance requirements for corporate transactions

Financial Services and Markets Act 2000: Regulates transactions involving regulated activities in the financial services sector

Enterprise Act 2002: Establishes merger control thresholds and competition considerations for corporate purchases

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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