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Steps for selling or buying – part 2: Agreements

Whether you’re having a share sale or business and asset sale, there will be a sale and purchase agreement. The sale and purchase agreement is the binding contract between you and your buyer or seller. This will set out the purchase price, it will set out things like restricted covenants, and it will also set out in quite a lot of detail the warranties you’re expected to give. Warranties are promises you make about the business, which your buyer relies on when entering into the contract.