This document is an optional condition which can be used in a business sale agreement.
It is common in business sale agreements, where the purchaser requires a loan to pay part of the purchase price, for the sale to be conditional on the purchaser obtaining the loan on reasonable conditions.
Using this precedent
This precedent clause is a condition precedent which can be used in a business sale 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 LexisNexis 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.