This document is a clause which can be inserted into a business sale agreement.
In certain circumstances, the purchaser of a business might require substantial assistance from the vendor for a certain period post completion. In these circumstances, it is advisable to set out the services to be provided. Detail about which services would be provided at the expense of the vendor, and which services are at the expense of the purchaser, should also be included.
These arrangements are highly customised. This precedent therefore provides a framework within which to set out the customised arrangements regarding these services and the costs of the services where they are provided at the purchaser’s expense.
Using this precedent
This precedent clause can be used in a business sale agreement. This precedent can also be inserted as a schedule to 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.