This document is a condition which can be used in a business sale agreement.
Where the purchaser of a business identifies that the continued success and operation of the business, at least for an interim period, is partially reliant on certain key employees, then it is important for any sale agreement relating to that business to be conditional on the retention of those key employees after completion of the sale.
Using this precedent
This precedent clause is a condition precedent which can be used in a sale of business agreement. It can also be inserted into the “conditions precedent” schedule 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.