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Purchase and Sale Agreements

The purpose of a purchase and sell agreement is to allow for a relatively easy business transition from one shareholder to another. However, over the past few years people have entered into what can be termed as “Purchase and Sell Disagreements”. The agreements contain incorrect and/or confusing language. Given these problems, there is little wonder that these transactions have ended up in litigation where business transitions are never easy.

It is important that all parties to a purchase and sell agreement consult with an attorney as well as their appraisers to perform an analysis on any formulas, looking for potential subjective areas of interpretation. Appraisers and attorneys must carefully assess each word individually, and in aggregate, to ensure the agreement is well-crated, explicit, detailed, and irrefutable to avoid costly unintended consequences.