Michigan 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.

Michigan Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price is a legal document that outlines the terms and conditions of selling a business owned by a sole proprietor in Michigan, where the seller provides financing for a portion of the purchase price. This agreement is crucial for both parties involved as it establishes their rights, responsibilities, and obligations throughout the sale process. The agreement typically includes various clauses and sections to ensure a comprehensive and detailed understanding of the transaction. Here are some essential elements and keywords commonly found in a Michigan Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price: 1. Parties: Clearly identifies the buyer (the individual or entity purchasing the business) and the seller (the sole proprietor selling the business). 2. Purchase Price: Specifies the total amount agreed upon for the sale, including any down payment made by the buyer. 3. Financing Terms: Outlines the portion of the purchase price financed by the seller, including the interest rate, repayment schedule, and any applicable penalties or fees. 4. Assets and Liabilities: Describes the assets and liabilities included in the sale, such as equipment, inventory, intellectual property, contracts, leases, and any outstanding debts. 5. Conditions of Sale: Includes conditions precedent that both parties must fulfill before the sale becomes binding, such as due diligence investigations, obtaining necessary permits or licenses, or approval from third parties. 6. Representations and Warranties: Covers the assertions made by both parties regarding the accuracy of information provided about the business, financial statements, legal compliance, and any pending litigation. 7. Transfer of Ownership: Details the process and responsibilities for transferring ownership of the business, including necessary documentation, timing, and any required notifications to customers, employees, or suppliers. 8. Closing and Escrow: Outlines the procedures for the closing of the sale, including the allocation of costs, obtaining consents and approvals, and the use of an escrow agent to hold funds until all obligations are fulfilled. 9. Remedies and Disputes: Defines the remedies available to the parties in case of default or breach, as well as the dispute resolution mechanism, whether it's litigation, mediation, or arbitration. It's important to note that there may be variations of the Michigan Agreement for Sale of Business by Sole Proprietorship with Seller to Finance Part of Purchase Price tailored to specific industries or particular circumstances. For instance, agreements for a restaurant, retail store, professional practice, or service-based business might have additional clauses addressing industry-specific considerations. Before using any legal template, it's advisable to consult with a qualified attorney to ensure the agreement aligns with state laws and protects the interests of both parties involved.