Asset Purchase Agreement Installment Payments for Canada

Asset Purchase Agreement Installment Payments Template for Canada

A comprehensive legal agreement governed by Canadian law that documents the sale and purchase of assets where the purchase price is paid in installments over time. The agreement includes detailed provisions for the transfer of assets, payment terms, security interests to protect the seller during the payment period, representations and warranties, and remedies in case of default. It incorporates relevant provincial and federal Canadian legislation, including the Personal Property Security Act (PPSA) for securing the unpaid purchase price, and addresses tax implications under Canadian tax laws. The document provides a framework for structured payments while protecting both parties' interests throughout the payment period.

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What is a Asset Purchase Agreement Installment Payments?

An Asset Purchase Agreement with Installment Payments is essential when businesses want to complete asset acquisitions but require extended payment terms. This agreement, structured under Canadian law, enables the purchase of significant assets while spreading the payment over time, making substantial acquisitions more feasible for many businesses. It provides comprehensive protection for both parties by incorporating security interests under provincial PPSA legislation, defining clear payment schedules, and establishing remedies for default scenarios. The document is particularly valuable in situations where immediate full payment isn't practical or desirable, such as in business succession planning, equipment purchases, or property acquisitions. It includes specific provisions required under Canadian federal and provincial laws, including tax considerations, security registration requirements, and compliance with provincial sales legislation.

What sections should be included in a Asset Purchase Agreement Installment Payments?

1. Parties: Identification of seller and purchaser with full legal names and addresses

2. Background: Context of the transaction and brief description of the assets being sold

3. Definitions and Interpretation: Key terms used throughout the agreement and rules of interpretation

4. Purchase and Sale: Description of assets being sold and confirmation of transfer

5. Purchase Price and Payment Terms: Total purchase price, installment schedule, and payment mechanics

6. Security Interest: Details of security interest retained by seller until full payment

7. Seller's Representations and Warranties: Statements of fact and assurances about the assets and seller's authority

8. Purchaser's Representations and Warranties: Statements regarding purchaser's authority and ability to pay

9. Closing and Transfer of Title: Mechanics and timing of asset transfer and documentation

10. Default and Remedies: Consequences of payment default and available remedies

11. Taxes and Expenses: Allocation of tax obligations and transaction costs

12. Notice: Communication requirements and contact details

13. General Provisions: Standard boilerplate provisions including governing law, assignment, and amendments

What sections are optional to include in a Asset Purchase Agreement Installment Payments?

1. Due Diligence: Used when purchaser requires specific pre-closing investigation rights

2. Environmental Matters: Required for sales of assets with potential environmental implications

3. Employee Matters: Included when the assets include employees or employment obligations

4. Intellectual Property: Required when assets include IP rights or licenses

5. Third Party Consents: Needed when asset transfer requires external approvals

6. Post-Closing Covenants: Used for ongoing obligations after initial transfer

7. Insurance: Required when specific insurance must be maintained during payment period

8. Transition Services: Included when seller must provide post-closing operational support

What schedules should be included in a Asset Purchase Agreement Installment Payments?

1. Schedule A - Asset Description: Detailed list and description of all assets being purchased

2. Schedule B - Purchase Price and Payment Schedule: Detailed breakdown of payments, dates, and amounts

3. Schedule C - Form of Security Agreement: Template security agreement protecting seller's interests

4. Schedule D - Permitted Encumbrances: List of accepted liens or encumbrances on the assets

5. Schedule E - Required Consents: List of third-party approvals needed for transfer

6. Schedule F - Excluded Assets: List of assets specifically excluded from the sale

7. Schedule G - Form of Bill of Sale: Template for transferring title to tangible personal property

8. Schedule H - Transfer Documents: Forms for transferring specific assets (vehicles, IP, etc.)

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Canada

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Real Estate

Technology

Transportation

Industrial Equipment

Retail

Agriculture

Mining

Construction

Healthcare

Hospitality

Energy

Telecommunications

Relevant Teams

Legal

Finance

Treasury

Mergers & Acquisitions

Corporate Development

Risk Management

Operations

Procurement

Business Development

Compliance

Relevant Roles

Chief Financial Officer

Corporate Counsel

General Counsel

Finance Director

Business Development Manager

Mergers & Acquisitions Director

Treasury Manager

Asset Manager

Commercial Director

Risk Manager

Corporate Secretary

Financial Controller

Operations Director

Procurement Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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