Business Sale Agreement
A Business Sale Agreement is used to clearly set out all relevant terms of the sale when selling or buying a business.
4.5 (220 reviews)
Last updated January 13, 2025
Under 15 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
You MUST seek legal advice to ensure that this agreement conforms with relevant State and Territory legislation as well as your intentions for the transaction. Additionally, inclusion of land in this agreement will incur an additional set of legal requirements, and we recommend seeking advice from a lawyer specialising in conveyancing. A Business Sale Agreement is a legal document used to transfer business assets from the seller (business owner) to the buyer (new owner). It sets out the terms clearly, so both the seller and the buyer can avoid any future disputes in the sale of a business.
You may also know the Business Sale Agreement by one of its other names:
- Business Sale Contract
- Business Purchase Agreement
- Sale of Business Agreement
- Sale of Business Contract
The Legal Risk Score of a Business Sale Agreement Template
Our legal team have marked this document as medium risk considering:
- There is a risk that either party may fail to fulfill their obligations by the stipulated completion date, which could lead to financial losses or legal complications.
- There is a possibility that the information provided about the business or assets might not be entirely accurate or complete, potentially leading to unforeseen liabilities or disputes post-completion.
- The transition of employees may not proceed smoothly, either due to refusal of employees to transfer to the new employer or due to discrepancies in the handling of their accrued entitlements, which could affect business operations and incur additional costs.
Business Sale Agreement Checklist
Complete your free Business Sale Agreement with our checklist
Review and Signatures
Ensure all parties review the final document carefully and provide their signatures as required under section 127 of the Corporations Act 2001.
Notice of Completion
Send formal notices to all relevant parties to communicate the completion of the agreement, as outlined in the Notices section.
Transfer of Assets and Information
Follow the detailed steps in the Completion section to transfer all assets, intellectual property, and relevant information to the purchaser.
Legal and Regulatory Compliance
Verify compliance with all legal and regulatory requirements mentioned in the agreement, including updating registrations and fulfilling any conditions related to the contracts and intellectual property.
Use this Business Sale Agreement if:
- You have negotiated the sale/purchase of a business;
- You want to set out the terms and conditions of the sale/purchase;
- You are a small to medium sized business and need a concise sale document to limit liabilities.
What does the Business Sale Agreement cover?
- Transfer of ownership of assets;
- Particular assets to be transferred;
- Confidentiality;
- Any conditions precedent;
- Employees;
- Relevant warranties; and
- Restraint clause
Other documents you may need:
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