Document background
The Agreement of Purchase and Sale of Business Assets is a crucial document used in Hong Kong business transactions when one entity wishes to acquire specific assets of another business without purchasing the entire company. This document is essential for transactions ranging from small business asset transfers to large corporate asset acquisitions. It must comply with Hong Kong's legal framework, including the Sale of Goods Ordinance (Cap. 26) and Transfer of Businesses (Protection of Creditors) Ordinance (Cap. 49). The agreement typically covers all aspects of the asset transfer, including tangible and intangible assets, intellectual property, contracts, and equipment. It's particularly important in situations where businesses are restructuring, divesting non-core assets, or acquiring specific business components. The document provides comprehensive protection for both parties by clearly defining the assets being transferred, the terms of the transfer, warranties, and both parties' obligations.
