Stock Purchase Agreement


What is a Stock Purchase Agreement?

Stock Purchase Agreement lays out the sale of shares in a company and what is being obtained. It is signed by both the company and the buyers of the stock.

How it is different from Asset Purchase Agreement?

An asset purchase agreement focuses on the assets of the business, like equipment, property, laptops etc, whereas a stock purchase agreement focuses on the shares of the business, whether a controlling stake or the entire business.

Why You Should Use a Stock Purchase Agreement

The number of shares is documented in the agreement

The price per share is mentioned

It guarantees the ownership of the stock by the seller to the buyer

An agreement will protect the company as well as the buyer if any dispute raises

This contract lays out all of the warranties and provisions of the sale

Stipulates resolution of disputes for the protection of the company and the buyer