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Asset Purchase Agreement Basics

Reviewed by Rocket Lawyer On Call Attorney  Trisha Newman, Esq

When you want to buy something owned by another business - whether it's office supplies, furniture, or even a customer list - use an Asset Purchase Agreement to get the terms in writing. If you're the seller, you'll want to have a record of the transaction as well as the terms. An Asset Purchase Agreement is the form to use.

Use the Asset Purchase Agreement document if:

  • You are ready to purchase the assets of a business and you want to define the terms and conditions upon which the purchase will occur.
  • You are selling the assets of your business and need want to define the terms of that sale.

What if you want to sell your company's customer list, but not your business? What if you want to buy another business' real estate or machinery to expand your own company? An Asset Purchase Agreement is a contract for the sale and purchase of assets of a company. Those could include tangible assets, such as real estate, furniture or supplies, or intangible assets, such as a customer database or accounts payable, a business name or other intellectual property. Use an Asset Purchase Agreement to detail terms such as purchase price, conditions, and escrow terms. You can also include an inventory of the assets in this agreement. In an Asset Purchase Agreement, both buyer and seller agree to the specific terms.

Other names for this document: Asset Sale and Purchase Agreement

Sample Asset Purchase Agreement

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