The buyer usually has a conditional period of five to twenty days after the execution of the GSP to carry out due diligence and ensure financing. Before a transaction can take place, the buyer and seller negotiate the price of the item for sale and the terms of the transaction. The SPA is a framework for the negotiation process. The SPA is often used during a large purchase, for example. B of a property, or frequent purchases over a given period. Whether a company`s assets or shares are purchased (see our article: Asset Sale vs. Share Sale), the first step is to trade and design the GSP. The GSP is occasionally created by real estate agents, brokers or even by the parties themselves. However, it is common and recommended that lawyers be mandated to prepare or at least verify the GSP before the parties sign. At that time, buyers and sellers will likely have preliminary discussions about key terms (e.g..B. purchase price, sale of assets or shares) or may even have drafted a non-binding memorandum of understanding outclaring all the essential terms.
The lawyers will then be tasked with negotiating and repairing the details of the GSP. The parties must also agree on a deadline, i.e. the date on which the transfer of ownership will take place officially. The deadline is often 30 to 60 days after the signing of the GSP, but depends on the circumstances of the parties. Entering into a purchase and sale agreement can be complicated and technical. Before becoming final, the contract may be amended as a result of negotiations between the buyer and the seller and counter-offers presented to the buyer by the seller.