Share Purchase Agreement is a legal contract between the buyer and the seller, setting out the terms & conditions relating to the sale and purchase of shares in a company.
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How is a share purchase agreement different from a shareholder's agreement?
The scope of the shareholder’s agreement is much wider than of a share purchase agreement. Shareholders agreement lays down the rights and other obligations of the parties.
Why is a share purchase agreement important?
A share purchase agreement is a binding contract in the court of law and hedges the chance of confusion that may arise during a sale/purchase transaction of shares.
What does a share purchase agreement states?
The share purchase agreement is a contract between the buyer and the seller where the seller agrees to sell a fixed number of shares to the buyer at a determined price.