This document is a clause which can be inserted into a business sale agreement.
Sometimes, the weekly gross taking of the business being sold is a major consideration for the purchaser entering into the sale transaction, and has a material effect on the purchase price.
In those cases, it is common for the purchaser to require the vendor to stipulate the average weekly or monthly gross takings of the business, and to predict the future gross weekly or monthly takings for a certain period after completion, as part of the warranties provided under the sale of business agreement.
Using this document
This precedent clause can be used in a sale of business agreement. It can also be inserted into “Warranties” schedules of 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 Lexis Nexis by Jeremy Kriewaldt, Partner, Atanaskovic Hartnell and Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.