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Contract For Sale Of Business Template for Nigeria

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Key Requirements PROMPT example:

Contract For Sale Of Business

"I need a Contract for Sale of Business under Nigerian law for the sale of my medium-sized manufacturing company in Lagos, with specific provisions for machinery transfer and retention of key technical staff, targeting completion by March 2025."

Document background
The Contract For Sale of Business is a crucial document used when transferring ownership of an entire business operation in Nigeria. It is typically employed in scenarios ranging from small business acquisitions to large corporate transactions. The document must comply with Nigerian legal requirements, particularly the Companies and Allied Matters Act (CAMA) 2020 and relevant tax legislation. It encompasses comprehensive provisions for the transfer of all business elements, including assets, employees, contracts, intellectual property, and liabilities. The agreement protects both parties' interests by clearly defining the scope of the sale, purchase price mechanisms, warranties, and post-completion obligations. This document type is essential for ensuring a smooth transition of ownership while addressing regulatory compliance, due diligence findings, and risk allocation between parties.
Suggested Sections

1. Parties: Identification of the seller and buyer, including full legal names, registration numbers, and registered addresses

2. Background: Context of the sale, brief description of the business, and purpose of the agreement

3. Definitions: Defined terms used throughout the agreement, including Business, Assets, Completion Date, Purchase Price, etc.

4. Sale and Purchase: Core agreement to sell and purchase the business, including scope of what is being transferred

5. Purchase Price: Amount payable, payment structure, adjustments, and payment mechanics

6. Conditions Precedent: Conditions that must be satisfied before completion can occur

7. Pre-Completion Obligations: Seller's obligations in running the business between exchange and completion

8. Completion: Mechanics of completion, including timing, location, and actions required

9. Seller's Warranties: Standard warranties about the business, assets, accounts, employees, and operations

10. Buyer's Warranties: Basic warranties from the buyer, including capacity to enter the agreement

11. Employees: Treatment of employees, transfer arrangements, and related obligations

12. Restrictive Covenants: Non-compete and non-solicitation provisions binding the seller

13. Confidentiality: Obligations regarding business information and agreement terms

14. Announcements: Process for making public announcements about the sale

15. Governing Law and Jurisdiction: Nigerian law as governing law and jurisdiction for disputes

Optional Sections

1. Property Assignment: Required if the business owns rather than leases its premises

2. Intellectual Property Transfer: Detailed IP transfer provisions if the business has significant IP assets

3. Environmental Matters: Required for businesses with environmental impacts or compliance requirements

4. Data Protection: Necessary if the business handles significant personal data

5. Earn-out Provisions: Include if part of purchase price is contingent on future performance

6. Tax Covenant: Detailed tax provisions if significant tax risks or complex tax structure

7. Parent Company Guarantee: Required if buyer or seller is guaranteed by a parent company

8. Break Fee: Include if parties agree to compensation for failed completion

9. Third Party Consents: Required if key contracts or licenses need third party approval for transfer

Suggested Schedules

1. Schedule 1: Assets: Detailed list of all assets included in the sale

2. Schedule 2: Excluded Assets: List of assets specifically excluded from the sale

3. Schedule 3: Properties: Details of all properties owned or leased by the business

4. Schedule 4: Intellectual Property: List of all IP rights owned or used by the business

5. Schedule 5: Employee Information: Details of all employees, including terms and conditions

6. Schedule 6: Material Contracts: List and details of key business contracts

7. Schedule 7: Warranties: Detailed warranties given by the seller

8. Schedule 8: Tax Matters: Detailed tax warranties and provisions

9. Schedule 9: Completion Requirements: Detailed list of documents and actions required at completion

10. Schedule 10: Accounts: Recent financial statements and management accounts

Authors

Alex Denne

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

Relevant legal definitions






























































Clauses




































Relevant Industries

Manufacturing

Retail

Technology

Professional Services

Healthcare

Hospitality

Construction

Agriculture

Energy

Transportation

Education

Financial Services

Real Estate

Mining

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Human Resources

Operations

Tax

Compliance

Risk Management

Strategy

Mergers & Acquisitions

Business Development

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Corporate Lawyer

Legal Counsel

Business Development Manager

Finance Director

Company Secretary

Tax Director

Human Resources Director

Operations Manager

Commercial Director

Risk Manager

Compliance Officer

Strategy Director

Mergers & Acquisitions Manager

Industries










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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