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The document contains a less wide choice of guarantees than the other share sale contracts we offer. As a stock buyer, you use this agreement to ensure that the seller makes a number of contractual commitments regarding the business that they will continue to make after the sale. The final mechanics can be difficult as the parties have to agree on the timelines, the place of completion, the actions and what needs to be delivered upon completion. The latter usually includes all the formalities after closing (share transfer forms, share certificates, approvals of boards of directors and legal accounts of the company). In addition to preferred and common shares, a company may refer to its shares with a particular class structure. There are generally three classes (classes A, B and C) which describe proportions with different characteristics. For example, a Class A share may have more voting rights per share than a Class B or C share. It is intended for smaller and simpler transactions: the subscriber may already be familiar with the company (for example. B may be a director or shareholder), or he may trust the shareholders, or the transaction may represent a low risk. The purchase price is paid in cash (not in shares of the buying company).

This is a simple subscription agreement for new shares, under which the subscriber does not need guarantees on the state of the company. When part of the purchase price is retained by the buyer once completed, for example to satisfy copyright arising from the seller`s warranties and indemnities, this may be deposited into a fiduciary account with a third party such as a bank or lawyer. To this end, a mechanism will be put in place to describe trust agreements and predict when and how funds will be released. If a guarantee proves to be false, for example a guarantee that the target company is not currently in dispute, it can lead to a successful action for damages. The buyer must prove that the breach of warranty resulted in a significant loss, i.e. a depreciation of the targeted business. . . .

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