This business sale contract is intended to be used when the owner of a business sells the business to a new owner. The agreement addresses a variety of issues that may be relevant to a business sale, including: Once this business transfer agreement has been concluded and signed by all parties, it constitutes a binding agreement between the parties that allows them to make arrangements for the transfer of the business. If conditions are included in the agreement, these conditions must also be met for the transaction to be completed. If this is not the case, either party (or in some cases both parties) may have the right to withdraw from the contract. In this document, the form filler can enter the relevant identification details, e.B. whether the parties are individuals or companies, as well as their respective addresses and contact details. The form filler also enters the main features of the agreement between the parties, including dispute resolution and applicable law, and of course, all the relevant details about the business transfer. The business transfer agreement is legally binding if it is printed on judicial stamp paper or e-stamp paper and has been signed and dated by both the seller and the buyer. The value of the buffer paper depends on the state in which it is executed. Each state of India has provisions regarding the amount of stamp duty payable on these agreements.
Information about the stamp duty to be paid can be found on the websites of the state government. For example, the website of the State of Karnataka provides details on the stamp duty payable on the agreements, as well as the Delhi website. Both parties may retain a signed copy of the business transfer agreement. To do this, two different copies can be signed, or if only one copy is signed, it can be photocopied and then distributed between the parties. When employees are transferred to the company, elements of labour law may apply. Business transfer agreements in India are governed by the Indian Contract Act, 1872, which covers general contractual principles such as incorporation and mutual understanding, and the Sale of Goods Act, 1930, which deals with the ownership of goods and guarantees. This Contract is governed by the general principles of contract law as provided for by the common law. Depending on the industry in which the company operates, other legal standards specific to that industry may also apply.
When intellectual property is transferred with the company, elements of intellectual property law may apply, such as the Trade-marks Act of 1999 or the Copyright Act of 1957. This document can be used when a seller and buyer are preparing to enter into a new business purchase agreement. Other names for the document: Acquisition of a business contract, Business Purchase Agreement, Purchase of a Business Agreement, Transfer of Business Agreement, Buyer Seller Business Purchase Agreement. .