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Risks of not having purchase agreements

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SHARE PURCHASE AGREEMENTS

If you purchase or subscribe to shares without an agreement some of the risks may include:

you, as purchaser, may not have clear title to the shares;
there may be limited recourse against the vendor if the assets and liabilities are misrepresented;
it could cost you a lot of money if there are taxation liabilities, pending litigation or other undisclosed liabilities.

BUSINESS PURCHASE AGREEMENTS

If you purchase a business without a Business Purchase Agreement, some of the risks may include:

the legal entities selling and buying the assets may not be clearly identified;
the particular assets being transferred may not be clearly identified and not included in the purchase price;
the particular assets may be affected by third party interests;
you may not obtain appropriate warranties and indemnities.

Next, learn about the Key Commercial Issues around buying a business or shares in a business.

Why you need agreements for purchasing a business Risks of not having purchase agreements Key Commercial Issues for buying a business About Due Diligence About Shareholders' Deeds About Share Subscription Agreements

Business Purchase Agreement Share Purchase Agreement Share Subscription Agreement Due Diligence Checklist Confidentiality Agreement for Buying/Selling a Business Shareholders' Deed

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