Policies can be adopted either by the buyer or by the seller. The buyer may have doubts about the possible existence of a financial ceiling of liability negotiated by the sellers, or may have doubts about the seller`s future financial situation and ability to pay guarantee fees. Sellers may be concerned about the potential risk of losing their product from sale if the buyer claims a warranty, despite a thorough disclosure exercise. Or a policy can be seen as a viable alternative to committing money to a trust account for a long time. When goods or services are purchased by a consumer, certain conditions are provided by law, such as that the products will be of satisfactory and useful quality. When a buyer acquires the shares or activities of a business, these conditions have no effect and the general principle of “careful buyer” applies. A buyer wants to gather as much information as possible about the company or business, to understand what he accepts – such as a process known as “conduct of diligence.” In practice, warranty applications are rarely brought to justice and the information process is subject to considerable effort to ensure that the buyer is fully informed and that disputes are avoided. When a significant problem is identified by the data, it is usually addressed by price adjustment or compensation in the sales contract. The purchase price is paid in cash (instead of the shares of the buyer`s company). When all shares of the company are sold, the agreement usually contains provisions to prevent the seller from doing so: for example, if you and two trading partners all have the same shares in a company and a partner wishes to withdraw, a share purchase agreement can be used to buy the shares of the withdrawal partner. Shares (or shares) are shares of a company divided among shareholders (also known as shareholders). Purchase of shares and subscription contract for new shares.

New shareholders buy new stakes, but also buy shares from other shareholders. Creating a majority or minority stake. Full buyer protection Each area. Full version, warranty options extended by other shareholders. Option for claws-back against poor performance. Option for guarantors. Other versions of the document are available. The purchase and sale agreement contains a guarantee schedule of up to 40 pages and is often one of the most negotiated aspects of transaction documents. Although claims are relatively rare, both parties will want to prepare for this possibility. The buyer will ensure that the guarantees are as broad as possible, while the sellers will try to limit their scope. In fact, it is the distribution of risk between the two parties into a deal. In general, there are more practical and business issues to be faced with when selling a business than when selling shares.