Assumed Liabilities Asset Purchase Agreement Template for New Zealand

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Key Requirements PROMPT example:

Assumed Liabilities Asset Purchase Agreement

"I need an Assumed Liabilities Asset Purchase Agreement for the purchase of a manufacturing business in Auckland, where we're acquiring all plant and equipment assets valued at NZD 5 million and assuming specific employee and supplier liabilities, with completion planned for March 2025."

Document background
The Assumed Liabilities Asset Purchase Agreement is a specialized commercial contract used in New Zealand business transactions where a buyer acquires business assets while also agreeing to take on certain liabilities of the seller. This document is particularly relevant in situations involving partial business acquisitions, restructuring, or strategic asset purchases where the assumption of specific liabilities forms part of the commercial arrangement. The agreement must comply with New Zealand legal requirements and typically includes detailed schedules of assets being transferred and liabilities being assumed, along with comprehensive warranties and indemnities. It's essential for transactions where parties want to clearly delineate which liabilities transfer to the buyer and which remain with the seller, helping to minimize post-completion disputes and ensure regulatory compliance under New Zealand law.
Suggested Sections

1. Parties: Identifies and defines the Seller and Buyer with full legal names and addresses

2. Background: Sets out the context of the transaction, including brief description of the business and assets, and intention to transfer

3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules

4. Sale and Purchase: Core provision establishing the sale of assets and assumption of liabilities

5. Purchase Price: Specifies the purchase price, payment terms, and any adjustments

6. Assumed Liabilities: Detailed description of which liabilities are being assumed by the buyer

7. Excluded Liabilities: Clear specification of liabilities that remain with the seller

8. Conditions Precedent: Conditions that must be satisfied before completion occurs

9. Pre-Completion Obligations: Obligations of both parties between signing and completion

10. Completion: Details of the completion process, timing, and deliverables

11. Seller's Warranties: Warranties given by the seller regarding the assets and liabilities

12. Buyer's Warranties: Warranties given by the buyer, including capacity to complete the purchase

13. Indemnities: Indemnifications provided by each party

14. Post-Completion Obligations: Ongoing obligations after completion, including transition arrangements

15. Confidentiality: Provisions regarding confidential information and announcements

16. Dispute Resolution: Process for resolving disputes between the parties

17. General Provisions: Standard boilerplate clauses including notices, amendments, governing law

18. Execution: Formal execution provisions and signing blocks

Optional Sections

1. GST: Required when the transaction involves GST-registered parties or GST-applicable assets

2. Employee Matters: Required when employees are being transferred as part of the transaction

3. Intellectual Property: Required when significant IP assets are included in the purchase

4. Property Lease Assignment: Required when leased premises are part of the transferred assets

5. Environmental Matters: Required when the assets include land or operations with environmental implications

6. Competition Law Compliance: Required when the transaction size requires competition law consideration

7. Third Party Consents: Required when material contracts or licenses require third party approval for transfer

8. Earn-out Provisions: Required when part of the purchase price is contingent on future performance

Suggested Schedules

1. Schedule 1 - Assets: Detailed list and description of all assets being transferred

2. Schedule 2 - Assumed Liabilities: Detailed list and description of all liabilities being assumed

3. Schedule 3 - Excluded Assets: List of assets explicitly excluded from the transfer

4. Schedule 4 - Excluded Liabilities: List of liabilities explicitly excluded from assumption

5. Schedule 5 - Contracts: List of contracts being transferred or requiring assignment

6. Schedule 6 - Intellectual Property: Details of all IP rights being transferred

7. Schedule 7 - Properties: Details of any real property or lease interests being transferred

8. Schedule 8 - Employees: List of employees and their key employment terms

9. Schedule 9 - Completion Deliverables: List of all documents and items to be delivered at completion

10. Schedule 10 - Warranties: Detailed warranties given by the seller

11. Appendix A - Form of Transfer Documents: Pro forma transfer documents required for completion

12. Appendix B - Disclosure Letter: Seller's disclosures against the warranties

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Retail

Technology

Professional Services

Healthcare

Construction

Agriculture

Hospitality

Transportation

Real Estate

Mining

Energy

Education

Financial Services

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Risk & Compliance

Operations

Strategy

Tax

Treasury

Commercial

Due Diligence

Corporate Secretariat

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Commercial Director

Managing Director

Corporate Lawyer

Finance Director

Business Development Manager

Company Secretary

Risk Manager

Compliance Officer

Operations Director

Asset Manager

Due Diligence Manager

Transaction Manager

Legal Counsel

Financial Controller

Corporate Development Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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