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.
Last updated October 23, 2025
Suitable for Australia
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What is a business sale agreement?
What is a business sale agreement?
A business sale agreement is a legal document that outlines the terms and conditions for transferring ownership of a business from a seller to a buyer.
It covers the assets being sold, the purchase price, payment terms, and what happens if either side doesn't meet their obligations. Getting this in writing protects both parties well beyond a simple handshake deal.
Is a business sale agreement legally binding?
Is a business sale agreement legally binding?
Yes, a business sale agreement is a legally binding contract once both parties sign it with a genuine intention to be bound.
Its warranties, conditions and completion terms are enforceable, so a breach, like misrepresenting the business's financial position, can expose the breaching party to a claim for damages even after the sale has completed.
What's the difference between a business sale agreement and a share sale agreement?
What's the difference between a business sale agreement and a share sale agreement?
A business sale agreement transfers specific assets of a business, like equipment, stock and goodwill, while the underlying company or entity stays with the seller.
A share sale agreement instead transfers ownership of the company itself, including everything inside it, assets, liabilities and contracts. Only companies can be sold this way; sole traders and partnerships use a business sale agreement instead.
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Frequently asked questions
Does a business sale agreement cover the transfer of all business assets?
keyboard_arrow_upWhat protections does a business sale agreement provide for buyers and sellers?
keyboard_arrow_upCan a business sale agreement be used if the business includes land or property?
keyboard_arrow_upHow does a business sale agreement handle employees during the sale?
keyboard_arrow_upWhat are the main risks of using a business sale agreement?
keyboard_arrow_upIs a business sale agreement suitable for all types of businesses?
keyboard_arrow_upWhat's the most common mistake people make when buying or selling a business?
keyboard_arrow_upWhat steps should be taken after signing a business sale agreement?
keyboard_arrow_upHow much does it cost to get a business sale agreement, template versus a lawyer?
keyboard_arrow_upView Sample Business Sale Agreement
The Legal Risk Score of a Business Sale Agreement Template is Medium
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.
Meet Our Users
Articles about Business Sale Agreement
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Want to sell or purchase a business? Find out how to create a Business Sale Agreement and all the key terms you should include here.
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