PandaTip, beware! The transfer of partially paid shares (less than 100%) creates an obligation for the buyer and is assimilated to the transfer of a debt. In the last example (acorn trading), the preservation of these shares would create a commitment of $9,000 for the new shareholder. Clause 1.1 defines the definitions that apply throughout the agreement – the main objective is to reduce repetition within the body of the treaty, to make them shorter and more readable. In addition, by giving a specific meaning to certain terms used in the agreement, it avoids ambiguities and specifies that those concepts must also include facts that might not otherwise cover them (or vice versa). Unless explicitly defined, courts will interpret non-technical terms according to their normal and natural meaning or the meaning that can be inferred from the terms used by the parties in the document. Extrinsic expert evidence may be required to interpret technical terms that are not defined in the document itself. As mentioned above, it is common in practice that all cash payments due from the buyer are sent to the seller`s lawyers (often through the buyer`s lawyers), and that the agreement to make this payment in this way is a good and efficient execution of the buyer`s payment obligation. However, we have not established this standard contract on this basis and, once the buyer has deposited the consideration in the bank account designated by the seller, clause 3.2 confirms that this is a good and valid performance of the buyer`s obligation to pay the consideration. As this proposal is an abridged agreement, Clause 11 is an abridged notification provision. This clause deals with the consideration that the buyer must pay to the seller for the sales shares and describes how to pay the consideration, and this clause is therefore central to the agreement. WHEREAS the contemptuous is the registered owner of the shares or shares referred to in Schedule A (the “Shares”). 5.8 Each Party warrants that it will not take any action that could affect, impede or adversely influence the other Party`s obligations under this Share Transfer Agreement. PandaTip: Sometimes companies charge a fee for transferring shares and issuing new share certificates, probably less than $50, but you might want to check that first.
If you want these costs to be borne by the donor or shared between the two parties, you can change the above clause. 5.16 The assignor irrevocably releases and undertakes to exempt the assignee from any loss resulting from a breach of warranties or other conditions of the share transfer agreement. As currently drafted, this clause does not contain categories of “authorized assignments” in favour of the buyer (e.g. .B. Assignment of assignment shares to a subsequent buyer). .