Asset Purchase Agreement
/ˈæsɛt ˈpɜːrtʃəs əˈɡriːmənt/
Definitions
- (n.) A legally binding contract whereby the buyer agrees to purchase specified assets of a seller, often used in business acquisitions.
The parties signed an asset purchase agreement to transfer ownership of the company's equipment and inventory.
Forms
- asset purchase agreement
- asset purchase agreements
Related terms
See also
Commentary
Use precise definitions of included assets and liabilities to avoid disputes; distinguish clearly from stock purchase agreements.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.