Bill of Sale of Business is a generic template to acknowledge a sale and transfer of title between two parties under mutual agreement and considerations otherwise. This form also helps in setting the terms and conditions of sale. The seller of the business offers a warranty against lien or claim to the buyer. Please make copies of duly completed and signed bill of sale and hand over a copy to each party involved in the transaction. However, it is very important that both parties must define the scope and the content of the form like
- Name of the seller
- Name of the buyer
- Name and description of nature of business
- Date of executing the Bill of Sale of Business
- Signatures of the buyer and the seller
The buyer and seller must sign this bill of sale instrument to acknowledge the physical sale and transfer of the business and title. In addition, the seller agrees and declares that he / she will not engage in a similar business in the same locality or area. The seller undertakes to refrain from such business activity to protect the vested interest of the buyer and justify the investment made by the buyer. It is not necessary to describe the monetary transaction or other considerations in this Bill of Sale of Business form. However, the buyer may insist for inclusion of these particulars to create a proof of the ownership and receipt for the transaction. Every individual must sign this form when more than one seller or buyer engages in the transaction.
How to Write a Bill of Sale of Business
- Step 1: Enter seller’s name and buyer’s name on the next line.
- Step 2: Enter the name of the business on line (b) of section 1.
- Step 3: Enter the number of years, nature of the business, and location in section 3.
- Step 4: Enter date of executing this Bill of Sale of Business.
- Step 5: Space for buyer’s signature.
- Step 6: Space for seller’s signature.
Summary
Bill of Sale of Business documents a sale and transfer of business and title between seller and buyer in addition to defining terms and conditions of sale. This form has various provisions to document mutual terms required for transfer of the business title in good faith. It is necessary to phrase all terms and conditions of this bill of sale. The seller undertakes to refrain from conducting similar business activity in the same region to offer protection to the buyer’s investments in the business. Notarization of this form is not necessary unless the buyer or the seller insists the same. Please provide all particulars of tangible and non-tangible chattels and goods involved in the transfer of the business.
