Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price

• Category: Small Business - Business Sale
• State: Multi-State
• Control #: US-00642BG
• Format: Word; Rich Text

Description

This form involves the sale of a small business whereby the Seller will finance part of the purchase price by a promissory note secured by a mortgage or deed of trust and a security agreement evidenced by a UCC-1 financing statement. The "Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price" is a legal document used in Colorado that outlines the terms and conditions of a sale of a business by a sole proprietorship, where the seller agrees to finance a portion of the purchase price. This agreement is specifically designed for sole proprietorship and includes provisions for seller financing. There are different types or variations of this agreement based on specific terms and conditions agreed upon by the parties involved. Some possible types of the "Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price" could include: 1. Installment Payments Agreement: In this type of agreement, the purchase price is divided into installment payments to be paid over a specific period. The seller finances a portion of the purchase price, and the buyer agrees to make regular payments to the seller until the total amount is paid off. 2. Balloon Payment Agreement: In this agreement, the buyer initially makes regular payments to the seller for a specific period. However, at the end of the agreed period, there is a larger lump sum payment due, known as the "balloon payment," which completes the purchase price. 3. Security Agreement: This type of agreement includes additional provisions to protect the seller's interests. It may include lateralization of the business assets, ensuring that if the buyer defaults on payments, the seller can recover their investment by seizing the pledged assets. 4. Seller Financing Agreement with Interest: This variation involves the seller financing a portion of the purchase price and charging interest on the outstanding balance. The interest rate, payment schedule, and other relevant terms are agreed upon and included in the agreement. Regardless of the specific type, the "Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price" typically covers key aspects such as the purchase price, payment terms, seller financing terms, default and remedies, representations and warranties, and any additional provisions necessary to protect both parties' interests.

The "Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price" is a legal document used in Colorado that outlines the terms and conditions of a sale of a business by a sole proprietorship, where the seller agrees to finance a portion of the purchase price. This agreement is specifically designed for sole proprietorship and includes provisions for seller financing. There are different types or variations of this agreement based on specific terms and conditions agreed upon by the parties involved. Some possible types of the "Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price" could include: 1. Installment Payments Agreement: In this type of agreement, the purchase price is divided into installment payments to be paid over a specific period. The seller finances a portion of the purchase price, and the buyer agrees to make regular payments to the seller until the total amount is paid off. 2. Balloon Payment Agreement: In this agreement, the buyer initially makes regular payments to the seller for a specific period. However, at the end of the agreed period, there is a larger lump sum payment due, known as the "balloon payment," which completes the purchase price. 3. Security Agreement: This type of agreement includes additional provisions to protect the seller's interests. It may include lateralization of the business assets, ensuring that if the buyer defaults on payments, the seller can recover their investment by seizing the pledged assets. 4. Seller Financing Agreement with Interest: This variation involves the seller financing a portion of the purchase price and charging interest on the outstanding balance. The interest rate, payment schedule, and other relevant terms are agreed upon and included in the agreement. Regardless of the specific type, the "Colorado Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price" typically covers key aspects such as the purchase price, payment terms, seller financing terms, default and remedies, representations and warranties, and any additional provisions necessary to protect both parties' interests.