What is an Asset Purchase Agreement?
The assets and liabilities are the basic two elements of a business set up. It is hard to imagine a business working without these two factors. The entire plan is being made on the base of these two functions. The assets are always utilized to overcome all liabilities that may arise in business operations. The liabilities generally arise when businesses start operating according to their plans. But the businesses generally used to cover all those liabilities with the help of more investment.
The investment is being made by purchasing more assets. The assets not only let organizations cover their costs, but also help them go lucrative in their endeavors. The profits can only be reaped after one spends some amount in the shape of investment. The assets are purchased at two situations in general, i.e. at the start of a new business venture and during the ongoing business operations. The former involves starting of business operation while the later used to strengthen the ongoing operations. The asset purchase agreement usually takes place in all such situations as business used to buy at certain terms and conditions.
Asset Purchase Agreement Template
The seller agrees to sale certain assets at those terms and conditions. The agreement covers most of the liabilities of a business entity and let it make most use of the assets freely. The agreement covers all concerns of the buying as well as selling party and places responsibility over both of the parties to carry on in their agreed upon terms and conditions.
Create your own Asset Purchase Agreement by using the following template,