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Adjustment to initial purchase price (optional clause)

Adjustment to initial purchase price (optional clause)

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This document is an optional clause which can be used in a business sale agreement.

It is common for the value of the shares or assets being sold to change between the time of the negotiation and the date of completion. It is therefore common in business sale agreements to have a mechanism to adjust the purchase price, taking into account the fluctuation in value of the shares or assets.

Using this precedent

This precedent clause can be used in a business sale agreement. It can also be inserted into the separate precedents “Business sale agreement – sale of assets (short form)” and “Business sale agreement – sale of shares (short form)”.

When inserting this optional clause into an agreement, care must be taken to ensure that the agreement remains consistent. Cross-references, definitions and schedules should all be checked.

This document has been authored for  LexisNexis by Elise Margow, Principal, Legally Speaking.

This document is prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.