HEADS OF AGREEMENT FOR SALE OF BUSINESS

A Heads of Agreement (HoA) for the sale of a business is a preliminary, non-binding document that outlines the key terms and conditions agreed upon by the buyer and the seller before drafting a formal, legally binding sale agreement. It serves to summarise the main points of negotiation and provides a framework for the detailed sale contract. While the HoA itself is generally not enforceable, it demonstrates the parties’ intent to proceed with the transaction and can include binding provisions on certain aspects such as confidentiality and exclusivity.

Heads of Agreement for Sale of Business includes:-

• Identification of business
• Identification of property from which the business is operated
• Payment of holding deposit
• Vendor’s costs to be paid from deposit
• Deposit to be returned if lease does not proceed, less costs.
• Acceptance
• Terms to be included in contract for sale
• Terms to be included in lease
• No binding agreement until contract formalised.

4 pages long.

Includes GST