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Stock Purchase Agreement

2 signers
1 Seller
2 Purchaser
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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. These legally binding contracts are done between shareholders and companies. Also known as share purchase agreements, these agreements establish all of the terms and conditions related to the sale of a company’s stocks.
Stock Purchase Agreement Template

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.

When would you use a stock purchase agreement?

A stock purchase agreement is a contract that two parties sign when shares of an organization are being bought or sold. These agreements are often used by small companies that sell stock. Either the company or shareholders in the organization can sell stock to buyers.

Why You Should Use a Stock Purchase Agreement?

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The number of shares & Price are documented in the agreement

That’s the most important aspect of the contract. The number of the shared being bought or sold must be mentioned in the agreement.

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

If you don’t have any agreement in place and if any kind of discrepancy happens, you’ll have a hard time getting legal help.

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

If the buyers back out after a monetary transaction, the agreement will help you get your shares. 

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

Before, during or after the share transfer, many different types of problems may happen. A contract will help you to get legal aid.

FAQ About Our Stock Purchase Agreement Template

The employees who are employed by the organization will generally come with the transaction, like a stock purchase. If certain employees at the parent company provide significant services to the target entity, then the transaction will act like an asset purchase with respect to this group of employees.

In a sale of shares between two parties, a draft stock purchase agreement is normally prepared by the buyer’s legal representatives, as it’s the buyer who is most concerned that the agreement and to protect him / her against post-sale liabilities.

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