Purchase agreement

摘要

While due diligence is being completed, the parties will be negotiating the purchase agreement. The primary components consist of the purchase price, the representations and warranties, the covenants and agreements by both parties, the conditions that must be satisfied prior to closing and indemnification provisions.As discussed above, the purchase price often includes one or more forms of consideration. It is important for the agreement to clearly recite the components of the purchase price as well as any adjustments. Where possible, buyers should negotiate a significant holdback or escrow as security for both purchase price adjustments and indemnification claims.