What Are Some Possible Contingencies In Convenience Store Purchase Contracts?
If you are planning to buy a convenience store in New York or New Jersey then there are some contingencies that you need to be aware of. That is, if you identify a convenience store that you are interested in and you negotiate a price with the seller, what's next? Well it is signing a contract then you need to add some contingencies to make sure that you are protected. These contingencies should include:
If you plan on borrowing money to close on the business then you need to make sure that if your financing falls through you could cancel the contract;
Due Diligence Contingency
If you have not completed your review of the finances, expenses and profitability of the business then your contract must include a contingency permitting you to cancel the contract if you find out that the numbers "dont add up";
Your contract must be contingent upon an assignment of the business lease. Also this assignment must include additional terms that may be critical to your transaction, i.e., such as increasing the lease term.
Understand the significance of these contingencies prior to signing any contract.
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