The consideration of an acquired business is paid by the buyer to a seller in the form of cash, debt (such as a debt issued by the buyer), shares of the buyer or a combination of those shares. The sales contract is one of the most important documents in the life of an owner`s business. This is why it must be treated with care and rigour, with legal experts guiding both the seller and the buyer. Unless the parties agree otherwise, the sales contract will be cancelled if all of the above conditions are not met on an agreed date (the ”Longstop” date). It is therefore essential that the G.S.O. determines how to determine when the conditions are met and when they can no longer be met. It should also indicate which of the parties is responsible for complying with the respective preconditions. The party concerned is required to make reasonable efforts to meet the relevant conditions up to the date of longstop. So why put all these contracts into one application? Glad you asked! Contract Lifecycle Management Lifecycle management systems support your entire contractual lifecycle. And well-designed and flexible contract lifecycle management systems support many different types of contracts, from Buy Side to Sell Side to the above-mentioned labor, real estate and distribution agreements. A well-designed contract lifecycle management system should be able to accommodate all of these types of contracts and improve reporting, compliance and document retention functionality.
If you think about how best to approach what we call co-tenancy, it is important to consider the following commonalities: the buyer will want to prevent the seller from creating a new competitive business that would affect the value of the business sold. The sales contract therefore contains restrictive agreements that prevent the seller (for a fixed period and in certain geographic regions) from recruiting existing customers, suppliers or employees and, more generally, from competing with the sale of the business. These restrictive alliances must be adequate in geography, size and duration. Otherwise, they may be in violation of competition law. Before we delve deeper, let`s take the definitions of buy-side and sales contracts. Buy-side contracts are agreements by which a buyer agrees to purchase goods or services from a seller for a fee.