Share Purchase Agreement

A Share Purchase Agreement (SPA) is a legally binding contract between a buyer and seller for the transfer of shares in a company. The agreement outlines the terms of the sale including the number of shares, purchase price, payment terms, representations and warranties, and conditions precedent to closing. It typically includes provisions for due diligence, indemnification, and dispute resolution. SPAs are commonly used in M&A transactions, investment rounds, and when existing shareholders exit a company. The document protects both parties by clearly defining their rights, obligations, and remedies in case of breach.