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Simple Business Sale Agreement for United Arab Emirates

Simple Business Sale Agreement Template for United Arab Emirates

A comprehensive legal document governed by UAE law that facilitates the transfer of ownership of a business from one party to another. This agreement outlines the terms and conditions of the sale, including the purchase price, payment terms, assets and liabilities included in the sale, warranties, and completion requirements. It complies with UAE Federal Laws, including the Commercial Transactions Law and Civil Code, and can be used for both asset sales and share transfers of small to medium-sized businesses within the UAE jurisdiction.

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What is a Simple Business Sale Agreement?

The Simple Business Sale Agreement is a fundamental legal document used in the United Arab Emirates for transferring ownership of a business from a seller to a buyer. This document is particularly suitable for straightforward business sales where the transaction structure is relatively uncomplicated. It encompasses essential elements required under UAE law, including the Commercial Transactions Law (Federal Law No. 18 of 1993) and the Civil Code (Federal Law No. 5 of 1985). The agreement is designed to protect both parties' interests while ensuring compliance with local regulations, making it ideal for small to medium-sized business transfers. It covers crucial aspects such as asset transfer, employee matters, warranties, and completion mechanisms, while being adaptable to various business types and sectors within the UAE market.

What sections should be included in a Simple Business Sale Agreement?

1. Parties: Identification of the seller and buyer with full legal names and registered addresses

2. Background: Context of the transaction and brief description of the business being sold

3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty

4. Sale and Purchase: Core transaction terms including what is being sold and purchased

5. Purchase Price: The agreed price and payment terms, including any adjustments or earn-outs

6. Completion: Details of when and how the sale will be completed, including conditions precedent

7. Seller's Warranties: Standard warranties about the business, assets, and liabilities

8. Buyer's Warranties: Basic warranties from the buyer regarding authority to enter into the agreement

9. Pre-Completion Obligations: Seller's obligations in running the business before completion

10. Handover: Process for transferring business operations, assets, and documents

11. Confidentiality: Obligations regarding confidential information

12. Governing Law and Jurisdiction: Specification of UAE law and relevant courts

13. Execution: Signature blocks and execution formalities

What sections are optional to include in a Simple Business Sale Agreement?

1. Employee Matters: Used when employees are being transferred as part of the business sale

2. Intellectual Property: Required when significant IP assets are part of the sale

3. Property Leases: Included when business premises are leased and need to be transferred

4. Post-Completion Covenants: Used when specific post-sale obligations are required, such as non-compete provisions

5. Earn-out Provisions: Included when part of the purchase price is contingent on future performance

6. Tax Matters: Detailed section needed for complex tax arrangements or liabilities

7. Third Party Consents: Required when specific third-party approvals are needed for the transfer

8. Dispute Resolution: Optional detailed dispute resolution procedures beyond standard jurisdiction clause

What schedules should be included in a Simple Business Sale Agreement?

1. Schedule 1 - Business Assets: Detailed list of all assets included in the sale

2. Schedule 2 - Excluded Assets: List of assets specifically excluded from the sale

3. Schedule 3 - Employees: List of employees and their key employment terms

4. Schedule 4 - Contracts: List of business contracts being transferred

5. Schedule 5 - Properties: Details of any real estate or lease arrangements

6. Schedule 6 - Intellectual Property: List of all IP rights included in the sale

7. Schedule 7 - Warranties: Detailed warranties given by the seller

8. Schedule 8 - Completion Obligations: Detailed list of actions required at completion

9. Appendix A - Form of Transfer Documents: Ƶ for various transfer documents required

10. Appendix B - Required Consents: List of required third-party and regulatory consents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions




































Clauses
































Relevant Industries

Retail

Hospitality

Professional Services

Manufacturing

Technology

Real Estate

Food and Beverage

Healthcare

Education

Construction

Trading

Consulting

Automotive

Fashion and Apparel

Electronics

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Executive Leadership

Risk & Compliance

Operations

Business Development

Commercial

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Managing Director

Business Owner

Chief Financial Officer

Legal Counsel

Corporate Lawyer

Business Development Manager

Investment Manager

M&A Director

Company Secretary

Finance Director

Commercial Director

Risk Manager

Compliance Officer

Operations Director

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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