The Business Selling Agreement
The business selling agreement is a crucial document that summarizes all the elements of the transfer or transmission of a business. It serves as a basis for the drafting of the final sales contract and can take two forms: the unilateral promise of sale or the synallagmatic promise or compromise of sale.
Why a Promise?
The purpose of the promise is to consider all the documents and information provided by the seller as valid and reliable during the negotiation of the price and conditions. After signing the agreement, the potential buyer will have the opportunity to check or have checked all this information by a specialized firm.
The business selling agreement is almost always accompanied by:
– Conditions precedent relating to the authorizations and approvals required to carry on the business or to obtain loans.
– The payment of a sum corresponding generally to 5-10% of the amount of the transaction as compensation for immobilization.
To avoid costs for both parties and to prevent some buyers from coming “just to see,” the party that breaks off the negotiation may be charged a penalty at this stage of the negotiation.
The selling agreement must be sufficiently precise on all points of the transfer of the business. Any breakdown in discussion at this stage is detrimental to the company being sold.







