The Short Form Purchase and Sale Agreement is designed for use in the United States when parties need a streamlined approach to documenting a sale transaction. It's particularly suitable for straightforward purchases where extensive warranties, representations, and complex closing conditions are unnecessary. This agreement includes fundamental elements such as party identification, purchase price, payment terms, and basic warranties while avoiding the complexity of a full-length purchase agreement. It's commonly used for smaller transactions or when parties have an existing business relationship.
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1. Parties: Identifies and defines all parties to the agreement, including their legal names and addresses
2. Background/Recitals: Brief context of the transaction and relationship between parties
3. Definitions: Key terms used throughout the agreement
4. Purchase and Sale: Core transaction details including the asset/property being sold and purchase price
5. Payment Terms: Details of how and when payment will be made
6. Closing: Timing and conditions for completing the transaction
7. Representations and Warranties: Basic statements of fact and promises by both parties
8. Governing Law: Jurisdiction and applicable law
1. Due Diligence: Buyer's right to investigate the purchase - include for complex assets or real property transactions
2. Financing Contingency: Conditions related to buyer obtaining financing - include when purchase depends on buyer securing funding
3. Environmental Matters: Environmental compliance and risks - include for real property or industrial assets
4. Indemnification: Detailed protection against losses - include for higher-value transactions
1. Asset Schedule: Detailed list of assets being purchased
2. Purchase Price Allocation: Breakdown of purchase price across different assets
3. Title Exceptions: List of any title issues or encumbrances
4. Required Consents: List of third-party approvals needed
Relevant legal definitions
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