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Sales and Purchase Agreement
I need a sales and purchase agreement for a commercial property transaction in the Netherlands, ensuring compliance with local regulations, including a detailed description of the property, payment terms, and a clause for resolving disputes through arbitration. The agreement should also include provisions for due diligence and a timeline for closing the transaction.
What is a Sales and Purchase Agreement?
A Sales and Purchase Agreement forms the legal backbone of major business transactions in the Netherlands, spelling out exactly how assets, shares, or entire companies will change hands. It captures all the key details both parties have agreed to - from the final price and payment terms to what's included in the sale and when ownership transfers.
Under Dutch civil law, this binding contract protects both buyer and seller by clearly stating their rights and obligations. Beyond the basic sale terms, it typically covers important safeguards like warranties, conditions that must be met before closing, and what happens if something goes wrong. For complex deals, Dutch lawyers often build in specific provisions about permits, employee matters, and tax implications.
When should you use a Sales and Purchase Agreement?
You need a Sales and Purchase Agreement when buying or selling significant business assets in the Netherlands - from company shares and real estate to entire business operations. This becomes especially important for transactions above €25,000, where verbal agreements alone won't provide enough protection or clarity.
Use this agreement for complex deals involving multiple conditions, like obtaining regulatory approvals or transferring licenses. It's particularly vital when the transaction includes warranties about the business's condition, employee contracts, or intellectual property rights. Dutch courts look to these agreements as the definitive record of what both parties intended, making them essential for protecting your interests if disputes arise later.
What are the different types of Sales and Purchase Agreement?
- Business Sell Agreement: For transferring entire companies or business units, including assets, contracts, and employee relationships
- Residential Purchase Contract: Specialized for Dutch residential property transactions, incorporating local real estate laws
- Car Sell Agreement: Simplified format for vehicle sales, focusing on registration transfer and technical specifications
- Aircraft Purchase And Sale Agreement: Complex agreements covering aviation regulations and maintenance history
- Purchase Agreement Between Buyer And Seller: Standard template adaptable for general commercial transactions
Who should typically use a Sales and Purchase Agreement?
- Business Owners and Entrepreneurs: Primary parties who buy or sell companies, assets, or shares under Dutch corporate law
- Corporate Lawyers: Draft and review Sales and Purchase Agreements to ensure legal compliance and protect client interests
- Notaries: Required by Dutch law to authenticate certain transactions, especially for real estate and share transfers
- Financial Advisors: Help structure deals and verify financial terms align with market conditions
- Due Diligence Teams: Investigate claims and warranties made in the agreement before closing
- Company Directors: Sign agreements on behalf of their organizations and ensure board approval when needed
How do you write a Sales and Purchase Agreement?
- Party Details: Gather complete legal names, registration numbers, and authorized representatives of all involved parties
- Asset Information: Document exact descriptions of what's being sold, including serial numbers, addresses, or share quantities
- Financial Terms: Outline purchase price, payment schedule, and any conditions affecting the price
- Due Diligence: Collect relevant business records, permits, and financial statements
- Timeline Planning: Set key dates for signing, payment, and transfer of ownership
- Legal Requirements: Check if notarial deed is needed under Dutch law for your specific transaction
- Automated Support: Use our platform to generate a legally-sound agreement that includes all mandatory elements
What should be included in a Sales and Purchase Agreement?
- Party Identification: Full legal names, addresses, and registration numbers of buyer and seller
- Subject Matter: Precise description of assets, shares, or business being transferred
- Purchase Price: Clear statement of amount, currency, and payment terms
- Transfer Details: Specific timing and method of ownership transfer under Dutch law
- Warranties: Seller's guarantees about the condition and status of what's being sold
- Governing Law: Explicit choice of Dutch law and jurisdiction
- Signing Authority: Proof of representatives' power to bind their organizations
- Notarial Requirements: Provisions for mandatory notarial execution when applicable
- Compliance Elements: Our platform automatically includes all these required components
What's the difference between a Sales and Purchase Agreement and an Asset Purchase Agreement?
A Sales and Purchase Agreement differs significantly from an Asset Purchase Agreement in several key ways, though both handle business transactions under Dutch law. The main distinction lies in their scope and what they cover.
- Transaction Scope: Sales and Purchase Agreements can cover any type of sale (shares, businesses, property), while Asset Purchase Agreements specifically deal with individual business assets
- Liability Transfer: Sales and Purchase Agreements often transfer both assets and liabilities, whereas Asset Purchase Agreements typically limit the buyer's exposure to specific acquired assets
- Due Diligence Requirements: Asset Purchase Agreements require detailed itemization and verification of each asset, while Sales and Purchase Agreements may take a more holistic approach
- Tax Implications: Different VAT and transfer tax treatments apply under Dutch tax law, depending on which agreement type you choose
- Legal Formalities: Asset Purchase Agreements often need additional documentation for each asset type, while Sales and Purchase Agreements can handle multiple elements in one document
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