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ARTICLE · 16 SEPTEMBER 2012

Understanding sale agreements: the key issues part 2

Understanding what is transferred and how much is paid is crucial for sellers, to manage the risk and maximise return.

AustraliaCorporate/Commercial Law

Key Points:

Understanding what's being transferred to the buyer, and how much it's paying, is crucial for sellers who want to manage their risk and maximise their return.

As we saw in the last article, practically speaking sellers will need to give some level of warranties to buyers and it will be in sellers' interests to disclose against those warranties carefully. In this article, we'll look at what might seem straightforward issues, but can really give rise to significant headaches for sellers: what are you selling or transferring to the buyer, how much money are you getting – and how many risks remain after the transaction?

Purchase price adjustments – how are they to be calculated?

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