This document is an optional clause which can be used in a business sale agreement.
It is advisable to incorporate into a business sale agreement a provision to permit interest to be charged on amounts that are paid after a due date. This acts as an incentive on parties to pay due amounts on time.
This document clause is mutually applicable to both vendor and purchaser.
Using this precedent
This precedent clause can be used in a business sale agreement. It can also be inserted into the “General” provisions 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 Elise Margow, Principal, Legally Speaking.
This document is prepared with the assistance of Specialist Editor Murray Landis, Partner, K&L Gates.