Short Form Share Purchase Agreement Sample

A Short Form Share Purchase Agreement Sample: What You Need to Know

A share purchase agreement is a legal document that outlines the terms and conditions of the sale of shares in a company. It`s an important document that helps to ensure that both the buyer and the seller understand the terms of the sale, and it`s crucial that the agreement is well-drafted and comprehensive. However, not all transactions require a lengthy and complex agreement. In some cases, a short form share purchase agreement is sufficient.

What is a Short Form Share Purchase Agreement?

A short form share purchase agreement is a simplified version of a regular share purchase agreement. It`s typically used in transactions where the sale of shares is straightforward and uncomplicated. A short form agreement can save time and money because it eliminates some of the more complex provisions found in a regular agreement.

When is a Short Form Share Purchase Agreement Appropriate?

A short form share purchase agreement is appropriate in situations where the transaction involves a small number of shares, and there are no complicated provisions or contingencies. For example, if an investor wants to buy a small number of shares in a privately-held company, a short form agreement may be appropriate. Similarly, if a company wants to buy back a small number of shares from a shareholder, a short form agreement may suffice.

What Should a Short Form Share Purchase Agreement Include?

Even though a short form share purchase agreement is less complicated than a regular agreement, it must still include the essential provisions necessary to protect the interests of both parties. These provisions include:

1. Identification of the parties: The agreement must identify the buyer and the seller and their respective addresses.

2. Description of the shares: The agreement should include a description of the shares being sold, including the number of shares and the class of shares.

3. Purchase price and payment terms: The agreement should specify the purchase price and the terms of payment, including any instalment payments or deposits.

4. Representations and warranties: The agreement should include representations and warranties made by both the buyer and the seller, including representations about the accuracy of financial statements and other disclosures.

5. Indemnification: The agreement should specify the indemnification provisions, including the circumstances under which the seller will indemnify the buyer and vice versa.

6. Governing law and jurisdiction: The agreement should include a provision that specifies the governing law and jurisdiction for disputes that may arise under the agreement.

Conclusion

A short form share purchase agreement can be a useful tool in certain situations, but it`s important to ensure that the agreement includes the necessary provisions to protect the interests of both parties. Consulting a legal professional who is experienced in drafting share purchase agreements can help you to ensure that your agreement is comprehensive and effective. If you need assistance in drafting a short form share purchase agreement, reach out to a legal expert today.