Document background
The Business Purchase Contract serves as the primary legal instrument for acquiring an existing business in India. It is essential for transactions involving the transfer of business assets, operations, and sometimes liabilities from one entity to another. The document must comply with various Indian laws including the Indian Contract Act 1872, Sale of Goods Act 1930, and relevant tax legislation. This contract type is typically used when acquiring business assets rather than shares, allowing buyers to select specific assets and liabilities they wish to acquire. The agreement needs to address multiple aspects including asset transfer, employee matters, intellectual property rights, and regulatory compliance, while incorporating necessary protections for both parties through warranties and indemnities. The document's structure and content must account for specific Indian legal requirements regarding contract formation, registration, and stamp duty obligations.
