The agreement should contain assurances and guarantees, for example, commitments. B of each party as to the execution of certain things. For example, the buyer wants the seller to inser and guarantee that at the time the expiry policies were issued, the seller was licensed as an insurance producer and had the right to make transactions and that the seller did not receive a significant number of letters of intent that should not be renewed in the last twelve months, which reduced the value of the assets to be acquired. The seller may require a business buyer to guarantee that he or she is authorized to purchase and that there are no disputes or other procedures that could prevent the buyer from closing the transaction or making payments in any note. Once the buyer has purchased the company book, he will want to protect himself from competition, solicitation and disclosure by the seller that could erode or destroy the assets that have just been acquired. The purchase of commercial agreements should be used by anyone wishing to buy or sell a business. The agreement can help give details in the sale, including aspects of the transaction that are for sale (i.e. assets or shares). In order to facilitate the change of business, the parties may include agreements on how and the people who will inform customers of the purchase and sale, as well as other issues that may affect the business transition, such as the transfer of telephone lines, the transfer of mail, the withdrawal or placement of reports on the agency`s former website. Etc. Early resolution of these problems will contribute to a smooth business transfer. When you buy assets in a business, you are not buying the business yourself, but only one aspect of it.
This can mean a product, a client list or some kind of intellectual property. The company retains its name, commitments and tax returns. No one forgets to include the purchase price in the agreement, but don`t forget other critical conditions such as how they are paid, when paid, consequences and corrective measures in case of non-payment, including a security interest in assets, etc. The diversity of payment methods and conditions is limited by your imagination. You`ll find a few examples in our checklist – please also indicate how the parties weigh the purchase price for filing tax returns. An agency`s insurance does not like to be taken for granted when selling an agency. Most agency agreements have provisions to notify the insurance company when an agency`s assets are sold or when the Agency merges with another agency. The agency agreement often states that the agency contract ends if the insurance company refuses to accept the sale, merger or transfer of assets. If the sustainability of one or more agency contracts held by the agency for sale is essential to the agreement, contact the parties with the seller`s written permission and ensure that the new contract is signed with the new owner of the Agency. If the sustainability of one or more Agency contracts with certain insurers is a precondition for conclusion, this condition is set in both the Memorandum of Understanding and the sales and sales contract. Depending on the size and complexity of the acquired business book and the relative knowledge of the buyer and seller, the buyer can only require the seller`s cooperation after the sale or need more support.