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© Copyright 2002-2003. All rights reserved.
Page 53
How To Investigate Any Business Opportunity
Lease 0 
Goodwill $6, 000
Fixtures and equipment 30, 000
Inventory 47, 400
Supplies 600
_________
$84, 000
( The allocations in paragraph 2 represent compromise of the conflicting tax interests of the buyer and
seller. )
3. Method of payment. The Buyer shall pay to the Seller the purchase price as stated above, in the fol-
lowing manner: 
(a) $10,000 by certified or cashier's check upon execution of this agreement, the receipt of which is
hereby acknowledged by the Seller, such proceeds to be held in escrow by Paul Jones, attorney for the
Seller, as provided in paragraph 13;
(b) $40,000 by certified or cashier's check at the date of closing, subject to the adjustments provided for
in paragraph 4; 
(c) the balance of $34,000 by a promissory note payable in consecutive monthly installments of $400
each beginning the first day of April, XXX6, together with interest at 6.5 % per annum. Such note shall
contain a provision, satisfactory to the attorney for the Seller, for the acceleration of the balance remain-
ing unpaid upon default in the payment of an installment for a period longer than thirty days. As security
for the payment of any such note, the Buyer shall execute and deliver to the Seller at the closing a chat-
tel mortgage upon the inventory, fixtures, and equipment described in paragraph 1, such mortgage to
contain an after acquired property clause and such other provisions as the attorney for the Seller may
request.
(Paragraph 3 recognizes the financing seller’s principal problem: security - or lack of it. The acuteness of
the problem results from the fact that the buyer has usually exhausted all acceptable forms of security in
getting the bank credit he needs.)
4. Adjustments. Adjustments shall be made at the time of closing for the following: inventory sold, in-
surance premiums, rent, deposits with utility companies, payroll and payroll taxes. The net amount of
these adjustments shall be added or subtracted, as the case may be, from the amount due on the pur-
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