Frequently Asked Questions About Purchase Agreements and the Laws of Los Angeles
Making large purchases can be intimidating — especially when it involves signing a Purchase Agreement3 min read
Making large purchases can be intimidating — especially when it involves signing a Purchase Agreement. Most business owners in Los Angeles have questions about the legal requirements and ramifications of signing a Purchase Agreement, and it’s important to have your questions answered before signing anything. Whether you’re purchasing a business or entering into a contract with another company, here are answers to some frequently asked questions about Purchase Agreement law in Los Angeles.
What is a Purchase Agreement?
A Purchase Agreement is a legally binding contract between two parties that outlines the terms and conditions of a purchase and sale. It’s usually used when two businesses are negotiating a major purchase or sale. Each party agrees to certain terms and conditions that both sides must adhere to in order for the agreement to remain valid. The Purchase Agreement can include detailed information about the deal, such as itemized lists of items being sold, delivery dates, payment terms, dispute resolution protocol, and more.
What are the Requirements of a Valid Purchase Agreement in Los Angeles?
The basic requirements of a valid Purchase Agreement in Los Angeles are that it must be in writing, signed by both parties, include consideration, and be specific about all details of the deal. Furthermore, California Civil Code 1614 requires that certain elements must be included for the contract to be enforceable, such as the name and address of the seller and buyer, the agreed sale price, and the date of delivery of the item(s).
Additionally, Buyers should be aware of California’s Statute of Frauds, which requires that certain contracts be in writing. These include contracts for the sale of land, the creation of surety, the lease/sale of goods over $500, the sale of goods that cannot be moved and has to be affixed to the land, and contracts that cannot be performed in under a year.
How Should I Negotiate my Purchase Agreement?
When negotiating your Purchase Agreement, it’s important to consider both the commercial and legal aspects of the deal. On the commercial side, be clear about both parties’ responsibilities and any potential delays or disruptions. And on the legal side, make sure that everything is spelled out in detail, and that the Agreement covers any potential legal issues that may arise. Discuss any special terms or conditions with your lawyer beforehand.
Also, remember that Purchase Agreements are negotiable, so don’t be afraid to ask for changes or modifications. It’s best if both sides are willing to make concessions — both parties should be able to benefit from the Agreement.
What Disclosures Must be Included in my Purchase Agreement?
Under California law, there are numerous disclosures that must be included in your Purchase Agreement. These include age and occupation information, disclosures and conditions regarding the seller’s representations, indemnification, warranty and limitation of remedy provisions, disclaimers, and more. It’s important to consult with a qualified attorney or business adviser to ensure that all of these disclosures are properly stated in the agreement.
Who Should I Contact for Assistance Drafting and Negotiating my Purchase Agreement?
If you are in the Los Angeles area and need legal counsel for drafting and negotiating a Purchase Agreement, UpCounsel is the best place to start. UpCounsel’s network of experienced lawyers can provide high quality legal services at cost-effective rates. Plus, their online attorney profiles display ratings and reviews of recent work from clients, so you can make sure that you’re engaging with an attorney you can trust.
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