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How can you design a contract for the sale of a business?

If you're ready to sell your business and your facility or property with it, it's time to work up a contract. Your attorney can help you draft a contract that protects you and your interests.

To start with, basic information such as your name, your address and the business's address and any business affiliations are listed. Since you're selling your business along with the property, you'll want to identify all the specific locations included in the sale. You should make sure that the contract is signed with your appropriate title. Include space for witness signatures as well as the buyer's signature.

List all the items included in the sale in the contract. Make sure to state the name of the business, to provide logo information, license information, information on business insurance and the facility's insurance as well as any land titles needed. List all the assets of the business including the facility being sold to the buyer. If multiple locations will be sold, you may want to have additional contracts for each sale or opt to have all sales completed in a single contract.

You should always include a disclosure agreement that states that you have disclosed all legal obligations. When you do this, you become responsible for any undisclosed liabilities your buyer discovers later, and it protects you against having to work with a buyer who has undisclosed bad credit or other financing issues.

You will want to include the sale terms in the contract as well. State how payment will be made and how long the buyer has to make a payment. Finally, have your attorney review the contract to verify its legality.

Source: Chron, "How to Draft a Contract for the Purchase & Sale of a Business," Sam Ashe-Edmunds, accessed Feb. 06, 2017

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