Document background
The Business Sale Purchase Agreement is a fundamental transaction document used in India when one party intends to sell and another party intends to purchase a business, whether through a share sale or asset sale mechanism. This agreement is essential for both private and public companies engaging in business transfers, mergers, or acquisitions. It must comply with Indian regulatory requirements, including the Companies Act, 2013, Competition Act, 2002, and various tax laws. The document typically includes detailed provisions covering the transaction structure, purchase price and payment terms, representations and warranties, indemnities, conditions precedent, and completion mechanics. It's particularly important in the Indian context where regulatory compliance requirements are stringent and specific sectoral regulations may apply. The agreement serves as the primary reference document throughout the transaction process and subsequent integration period.
