FAQ
Should I include a ‘reps and warranties’ section even if the deal is simple?
Yes, but only if the parties agree on basic guarantees like ownership rights or financial health. For example, a seller might warrant there are no outstanding lawsuits—this protects buyers. Skip lengthy disclaimers unless the deal involves complex assets like trademarks or employee contracts.
What’s the difference between an ‘asset purchase’ template and a ‘stock purchase’ template?
An asset purchase focuses on tangible/intangible items (equipment, inventory, patents) and lets the buyer avoid inherited liabilities. A stock purchase transfers full ownership, including debts and lawsuits. Choose asset purchase for liability protection; stock purchase if you want the buyer’s existing corporate structure.
Can I use one of these to outline seller financing terms?
Yes, but add a promissory note section detailing interest rates, balloon payments, or default conditions. For example, if the seller finances $100k at 8% with a 5-year term, specify late fees and security interests in the agreement. Always review with a lawyer to comply with usury laws.
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