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Business Asset Purchase Agreement Template for Singapore

A Business Asset Purchase Agreement under Singapore law is a legally binding contract that facilitates the transfer of business assets from one entity to another. It covers the sale and purchase of tangible and intangible assets, excluding shares in the company itself. The agreement is governed by Singapore's legal framework, particularly the Sale of Goods Act and Companies Act, and includes detailed provisions for asset transfer, warranties, indemnities, and completion mechanics.

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What is a Business Asset Purchase Agreement?

The Business Asset Purchase Agreement is utilized when a business wishes to sell specific assets rather than the entire company structure. This document, governed by Singapore law, is essential for transactions involving the transfer of business assets such as equipment, inventory, intellectual property, contracts, and goodwill. It provides a comprehensive framework for the transaction, including purchase price, payment terms, warranties, and completion requirements. The agreement ensures compliance with Singapore's regulatory requirements while protecting both parties' interests through clear allocation of risks and responsibilities.

What sections should be included in a Business Asset Purchase Agreement?

1. Parties: Identification and details of buyer and seller entities

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

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core transaction terms including assets being sold and purchase price

5. Completion: Timing and mechanics of closing the transaction

6. Warranties and Representations: Seller's assertions about the assets and business

7. Indemnification: Protection and compensation mechanisms

What sections are optional to include in a Business Asset Purchase Agreement?

1. Employee Matters: Terms regarding transfer of employees - used when employees are being transferred with the business

2. Intellectual Property: Specific provisions for IP transfer - used when IP assets are included in the sale

3. Real Property: Provisions specific to real estate transfer - used when real estate assets are included

4. Post-Completion Obligations: Ongoing obligations after closing - used when there are continuing obligations post-completion

What schedules should be included in a Business Asset Purchase Agreement?

1. Asset Schedule: Detailed list of all assets being transferred

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

3. Employee Schedule: List of transferring employees and their terms

4. Contracts Schedule: List of contracts being assigned or transferred

5. IP Schedule: Details of intellectual property being transferred

6. Property Schedule: Details of real property assets included in sale

7. Completion Obligations: Checklist of actions required at completion

Authors

Alex Denne

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

Jurisdiction

Singapore

Publisher

Ƶ

Cost

Free to use

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