Document background
The Sale Of Business As A Going Concern Agreement is a crucial document in South African commercial law, used when transferring an operational business from one entity to another while maintaining its functional status. This type of agreement is particularly important in South Africa due to specific legislative requirements, including VAT zero-rating provisions under the Value-Added Tax Act and automatic transfer of employment contracts under the Labour Relations Act. The document comprehensively covers all aspects of the business transfer, including assets, liabilities, employees, contracts, and intellectual property. It requires careful consideration of competition law, tax implications, and corporate compliance, making it essential for both large corporate transactions and smaller business transfers. The agreement's structure must comply with South African common law principles of contract while incorporating statutory requirements from various acts governing business transfers.
