A stock purchase agreement is an agreement between parties when shares of a company are being bought or sold. These agreements are often used by small corporations who sell stock to raise money or sell ownership of shares. Either the company or shareholders in the organization can sell stock to buyers. A stock purchase agreement is meant to protect each side of the transaction. Stock purchase agreements often come into play during business immigration process, when new business enterprises are established or shares of existing ones are purchased.
Stock purchase agreements are important because they put the terms of a sale into writing. This can prevent misunderstandings that may end up in the courtroom.
Another important benefit of a stock purchase agreement is that it provides specific information on the transfer of stock. This means all of the warranties from the seller are spelled out. It can also list dispute resolution measures.
Consider working with a competent attorney to draft or review a stock purchase agreement to avoid any misunderstandings or surprises. At Demidchik Law Firm, we have lawyers experienced in corporate transactions, including stock purchases.