Share & Purchase Agreement

Written by jennifer vanbaren
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A share and purchase agreement, or share purchase agreement, is used when a person owning stock shares agrees to sell them to another person. These agreements are used when a business sells its own stock or when an individual sells his shares of stock.

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Purpose

A share purchase agreement is used to outline the details of stock share purchases. It clearly states the terms of the purchase, the expectations and the price. It is an important document for both the buyer and seller.

Details

The agreement begins with the date and the names of the buyer and seller. It states the name of the stock along with its par value. The agreement also states how many shares of stock are being purchased by the buyer.

Features

The agreement also typically includes a copy of the shareholders agreement, including any amendments. The shareholders agreement is an agreement made by the corporation issuing the stock. It contains details about the stock; any changes made to the agreement are listed in an amendment.

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