Asset Purchase Agreement

An Asset Purchase Agreement (APA) is a legal contract used when one business buys specific assets from another business, rather than acquiring the entire company. These assets can include inventory, equipment, intellectual property, and customer lists. The agreement outlines what assets are being purchased, the purchase price, payment terms, and any conditions that must be met before the sale can be completed. APAs are often used to ensure clarity and protect both parties’ interests during the transaction, helping to avoid misunderstandings or disputes after the purchase.