The biggest difference is that an SPA is the sale of all shares, and an APA is the sale of selected assets. Therefore, they are both different transactions and have different procedures.
The Top 20 Most Important Contract Clauses Confidentiality Clause. A confidentiality clause requires one or more contracted parties to protect sensitive data. Indemnification Clause. Force Majeure Clause. Dispute Resolution Clause. Arbitration Clause. Termination Clause. Jurisdiction Clause. Privacy Clause.
Contracts are made up of three basic parts – an offer, an acceptance and consideration. The offer and acceptance are what the purpose of the agreement is between the parties. A public relations firm offers to provide its services to a potential client. An electrician offers to wire a new home.
A contract is not enforceable until an offer is made and the other party accepts the offer. An offer does not technically exist until the requesting party or the offeree has received it. Even after it's been received, the offer can still be changed or terminated any time before acceptance.
In many instances, a buyer in an asset transaction will not want to acquire any liabilities (other than contracted obligations for future performance). In those instances, the working capital adjustment will look only at current assets.