Opinion ID: 1105673
Heading Depth: 1
Heading Rank: 3

Heading: sale and purchase of stock

Text: Seller will sell to Buyer 60 shares of the issues and outstanding capital stock of Apparel Creations of America, Inc. (Corporation), free of all liens and encumbrances, that being sixty percent (60%) of all the Corporation's issued and outstanding capital stock owned by Seller, and Buyer will purchase the shares subject to the provision of this Agreement. It is understood that there are 100 shares of outstanding capital stock of Apparel Creations of America, Inc. Seller herein presently owns 100% (100 shares) of said capital stock and Purchaser presently owns 0% (00 shares) of said stock. After this statement of intent, the contract set out the purchase price of the stock and the method of its payment. It then recited a number of warranties reflecting that, at that time, Apparel Creations was a properly organized corporation whose shares were free of liens. It reflected certain assets and liabilities of the company and contained detailed provisions requiring Hazel Ramsey to indemnify Koullas, and/or Apparel Creations, for any loss caused by any undisclosed indebtedness of the corporation, prior to the sale of stock. The contract also verified that Koullas had conducted his own inspection of Apparel Creations' property and was not relying solely on Hazel Ramsey's representations in buying the stock. The parties acknowledged that their respective representations would survive the closing of the sale and that each would have certain rights and responsibilities in the event of loss or destruction of corporate assets before the closing of the sale. After detailing the documents to be delivered at the closing, the contract included the following arbitration clause: