A bulk sale is a sale of goods by a business which engages in selling items out of inventory, often in liquidating or selling a business, and is governed by Article 6 of the Uniform Commercial Code (UCC) which deals with bulk sales. Article 6 has been adopted at least in part in all states. If the parties do not comply with the notification process for a bulk sale, creditors of the seller may obtain a declaration that the sale was invalid against the creditors and the creditors may take possession of the goods or obtain judgment for any proceeds the buyer received from a subsequent sale.
UCC Section 6-104 specifies the duties of the bulk sales buyer, including determining the identity of the seller, and preparation of a list of claimants and a schedule of distribution. These duties are imposed on the buyer in order to give claimants the opportunity to learn of the bulk sale before the seller has been paid and disappeared with the money.
The Oklahoma Provision in Bulk Sales Agreement Regarding Information to be Supplied by Seller is a legal requirement specific to the state of Oklahoma that outlines the details and information that must be provided by the seller in a bulk sales transaction. This provision aims to protect both the buyer and creditors from possible financial risks associated with bulk sales. Key Information: 1. Asset Description: The seller must provide a detailed description of the assets being sold, including inventory, equipment, fixtures, and any other relevant items. This description should be comprehensive and accurate. 2. Financial Statements: The seller is required to provide financial statements such as balance sheets, income statements, and cash flow statements. These statements help the buyer assess the financial health of the business. 3. Tax Information: The seller must disclose any outstanding tax liabilities or assessments related to the business being sold. This ensures that the buyer is aware of any potential tax obligations they may inherit. 4. Liens and Encumbrances: The provision requires the seller to disclose any liens, mortgages, or encumbrances on the assets being sold. This information helps the buyer evaluate the marketability of the assets. 5. Customer and Supplier Contracts: If applicable, the seller needs to provide a list of all customer and supplier contracts related to the business. This allows the buyer to assess the stability of customer relationships and supplier agreements. Different types of Oklahoma Provisions in Bulk Sales Agreement regarding Information to be Supplied by Seller include: 1. Standard Oklahoma Provision: This provision encompasses all the aforementioned requirements, covering asset description, financial statements, tax information, liens and encumbrances, and customer and supplier contracts. 2. Specific Asset Provision: In certain situations, the seller may be selling only specific assets rather than the entire business. In such cases, this provision focuses on the detailed description and disclosure of these specific assets. 3. Confidentiality Provision: This provision ensures that the buyer keeps all information obtained from the seller confidential and does not use it for any purpose other than the bulk sales transaction. 4. Non-Compete Provision: While not directly related to information supplied by the seller, this provision may be included to restrict the seller from engaging in a similar business in the same geographical area for a specified period after the sale. Note: It is important to consult with a legal professional to ensure compliance with Oklahoma law and to draft a comprehensive bulk sales agreement that incorporates all relevant provisions, including the Oklahoma Provision regarding Information to be Supplied by Seller.The Oklahoma Provision in Bulk Sales Agreement Regarding Information to be Supplied by Seller is a legal requirement specific to the state of Oklahoma that outlines the details and information that must be provided by the seller in a bulk sales transaction. This provision aims to protect both the buyer and creditors from possible financial risks associated with bulk sales. Key Information: 1. Asset Description: The seller must provide a detailed description of the assets being sold, including inventory, equipment, fixtures, and any other relevant items. This description should be comprehensive and accurate. 2. Financial Statements: The seller is required to provide financial statements such as balance sheets, income statements, and cash flow statements. These statements help the buyer assess the financial health of the business. 3. Tax Information: The seller must disclose any outstanding tax liabilities or assessments related to the business being sold. This ensures that the buyer is aware of any potential tax obligations they may inherit. 4. Liens and Encumbrances: The provision requires the seller to disclose any liens, mortgages, or encumbrances on the assets being sold. This information helps the buyer evaluate the marketability of the assets. 5. Customer and Supplier Contracts: If applicable, the seller needs to provide a list of all customer and supplier contracts related to the business. This allows the buyer to assess the stability of customer relationships and supplier agreements. Different types of Oklahoma Provisions in Bulk Sales Agreement regarding Information to be Supplied by Seller include: 1. Standard Oklahoma Provision: This provision encompasses all the aforementioned requirements, covering asset description, financial statements, tax information, liens and encumbrances, and customer and supplier contracts. 2. Specific Asset Provision: In certain situations, the seller may be selling only specific assets rather than the entire business. In such cases, this provision focuses on the detailed description and disclosure of these specific assets. 3. Confidentiality Provision: This provision ensures that the buyer keeps all information obtained from the seller confidential and does not use it for any purpose other than the bulk sales transaction. 4. Non-Compete Provision: While not directly related to information supplied by the seller, this provision may be included to restrict the seller from engaging in a similar business in the same geographical area for a specified period after the sale. Note: It is important to consult with a legal professional to ensure compliance with Oklahoma law and to draft a comprehensive bulk sales agreement that incorporates all relevant provisions, including the Oklahoma Provision regarding Information to be Supplied by Seller.
