Contracts Business Sale Law & Legal Definition
Sale of the ownership of a corporate business may be made in several ways. A transfer of the corporate stock and assets, in return for cash or stock of the buyer, is the most common method for the sale of a corporation. Merger and consolidation are other manners of transferring the business. The decision as to the form a corporate acquisition will take, and the contents of a sales agreement or an agreement of transfer will most often be based on tax factors. Numerous other considerations are important, however, and must be taken into account in drafting such agreements. For example, sales of all or substantially all of the assets of a corporation are regulated by statute in most jurisdictions, and the agreement must be drafted to assure compliance with the prescribed procedures and requirements. The board of directors and a stated percentage of the shareholders must generally approve the transaction. Where stock of the buyer is used for all or part of the purchase price, provision may be necessary for compliance with federal and state securities laws and with stock exchange rules.
The agreement of a non-corporate business will contain similar provisions specifying the terms of the sale, such as purchase price and terms of payment, provisions to purchase the assets and goodwill of the business, or for the purchaser not to compete with the business of the seller.
Legal Definitions
Search Definitions
Get a Term Defined
- Request a legal definition! Submit a term you need defined.
- » Request Legal Definition
Submit a Definition
- Submit a Definition Help us build our database. Free listings for attorneys.
- » Submit a Definition
Help Build USLegal
- Join our Team and help build USLegal. Many opportunities for participation so Join our Network.
Build USLegal
Read a Law Digest
- Need to read the law or find an answer to a legal question? Visit our Law Digest for the largest selection of law digests and answers available.
Go to Law Digest
Form Packages
- Select from our most popular legal form packages.
- » Bankruptcy
- » Contract for Deed
- » Divorce
- » Employment Packages
- » Home Sales
- » Incorporation
- » LLC Formation
- » Landlord Tenant
- » Mutual Wills
- » Name Change
- » Personal Planning
- » Partnerships
- » View All Packages
Legal Life
- Organize your legal life today! View our free online guide to creating a Life Documents File and related products.
- » Life Documents File
- » Personal Planning Package
- » Life Documents Packages
- » New Parents
- » Newlyweds
- » Baby Boomers
- » Military
- » Other
Form Drafting
- Can′t find the form you need, or need a form we offer revised for your situation? Submit your request and our attorneys will review the request and let you know if the form can be provided.
Submit a drafting request...
