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Agreement Of Purchase And Sale Of Business Assets Template for New Zealand

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Key Requirements PROMPT example:

Agreement Of Purchase And Sale Of Business Assets

"I need an Agreement Of Purchase And Sale Of Business Assets for purchasing a small manufacturing business in Auckland, New Zealand, with a purchase price of NZD 2.5 million, including special provisions for retaining key employees and protecting proprietary manufacturing processes, with completion planned for March 2025."

Document background
The Agreement Of Purchase And Sale Of Business Assets is a crucial legal document used in New Zealand business transactions when one party wishes to acquire the assets of another party's business without purchasing the actual company structure. This agreement is essential for transactions where specific business assets are being transferred rather than shares in the company, allowing for more flexibility in selecting which assets and liabilities to include in the sale. The document must comply with New Zealand legislation including the Contract and Commercial Law Act 2017, Fair Trading Act 1986, and relevant tax laws. It typically includes detailed schedules of assets, purchase price mechanisms, warranties, and specific provisions addressing employee transfers, intellectual property rights, and ongoing obligations. This type of agreement is particularly useful when buyers wish to avoid taking on all historical liabilities of the business or when only certain parts of a business are being acquired.
Suggested Sections

1. Parties: Identifies and provides full legal details of the seller and purchaser

2. Background: Outlines the context of the sale, including brief business description and parties' intentions

3. Definitions and Interpretation: Defines key terms used throughout the agreement and sets rules for interpretation

4. Sale and Purchase: Core agreement to sell and purchase the assets, including basic transaction terms

5. Purchase Price: Specifies the total consideration and payment terms, including any adjustments

6. Conditions Precedent: Lists conditions that must be satisfied before completion occurs

7. Pre-Completion Obligations: Details seller's obligations in running the business before completion

8. Completion: Specifies completion date, location, and requirements for settlement

9. Assets: Describes the assets being sold and any excluded assets

10. Liabilities: Specifies which liabilities are assumed by purchaser and which remain with seller

11. Warranties: Seller's warranties regarding the business and assets being sold

12. Tax: Addresses tax implications and obligations of both parties

13. Confidentiality: Protects confidential information of both parties

14. Restraint of Trade: Prevents seller from competing with the business post-sale

15. Default and Termination: Specifies consequences of breach and termination rights

16. Dispute Resolution: Establishes process for resolving disputes

17. General: Standard boilerplate provisions including notices, amendments, governing law

Optional Sections

1. Employee Matters: Required when employees are being transferred to the purchaser

2. Intellectual Property: Needed when significant IP assets are involved in the sale

3. Lease Assignment: Required when business premises are leased and lease is being transferred

4. Third Party Consents: Needed when material contracts require consent for assignment

5. Environmental Matters: Required for businesses with environmental compliance obligations

6. Stock: Needed when inventory is a significant component of the sale

7. Transition Services: Required when seller will provide post-completion assistance

8. Security Interests: Needed when assets are subject to security interests requiring discharge

9. Earn-out Provisions: Used when part of purchase price is contingent on future performance

Suggested Schedules

1. Schedule 1 - Assets: Detailed list and description of all assets being sold

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

3. Schedule 3 - Contracts: List of business contracts being assigned to purchaser

4. Schedule 4 - Intellectual Property: Details of all IP rights included in the sale

5. Schedule 5 - Employees: List of employees and their key employment terms

6. Schedule 6 - Warranties: Detailed seller warranties about the business and assets

7. Schedule 7 - Properties: Details of any real property or lease interests

8. Schedule 8 - Purchase Price Allocation: Breakdown of purchase price across asset categories

9. Appendix A - Form of Transfer Documents: Templates for documents required to transfer assets

10. Appendix B - Completion Checklist: List of items required for completion

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

Retail

Manufacturing

Hospitality

Professional Services

Technology

Healthcare

Construction

Agriculture

Transportation

Education

Real Estate

Food and Beverage

Automotive

Entertainment

Mining

Energy

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Risk and Compliance

Operations

Commercial

Strategy

Tax

Business Development

Executive Leadership

Due Diligence

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Managing Director

Business Owner

Corporate Lawyer

Legal Counsel

Commercial Director

Business Development Manager

Finance Manager

Operations Manager

Company Secretary

Mergers & Acquisitions Director

Risk Manager

Compliance Officer

Due Diligence Manager

Transaction Advisory 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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