A Purchase of Business Agreement may include four different restrictive clauses or warranties, including:
Non-competition: Prevents the seller from entering into a similar, competitive business prior to the expiration of the non-competition period.
Non-solicitation: Prevents the seller from soliciting or hiring employees who will be or are working for the purchaser, prior to the expiration of the non-solicitation period.
Confidentiality: Protects both the purchaser and the seller from the harmful release of any proprietary or confidential information that may have been revealed at any time during negotiations.
Environmental compliance: Where applicable, the seller should guarantee that no hazardous spill or emission has occurred for which the purchaser could become liable and also guarantee that the business is not in violation of any relevant environmental laws.