Your website sales agreement is a roadmap to the orderly transition of ownership of your site to the purchaser.
Done correctly, the contract details who does what and when so that there is mutual understanding about the process.
Why is a good written website sales agreement important?
Because the contract prevents misunderstandings that can kill the deal and even lead to lawsuits between buyer and seller.
Note that a website sales agreement is more than a domain flipping contract (we prepare both types of website legal documents). The latter can be quickly done with minimal paperwork while the former often requires multiple transactions to nearly simultaneously occur so that each party gets what they want from the deal.
When you decide to part with your site, your Internet business lawyer can draft a website sales agreement that fits your needs, including reducing your legal risks, while at the same time delivering ownership to the buyer and ensuring you receive the purchase price.
Here are a few key issues that your website sales contract may cover…
1. Will you be selling a business entity that owns the website (an equity sale) or selling the website assets instead?
2. How will you get paid?
3. Who owns the intellectual property associated with the website, including the content (text, pics, audio, video, etc.), software, etc.?
4. Will you as the seller agree to advise the purchaser as a consultant? If so, for how many months/years, and how will you be paid for your consulting work?
5. Will you mediate or arbitrate any disputes between you and the buyer?
6. If the purchaser decides to sell the website, will you have first option to buy the site back? If so, for how much?
7. If the buyer fails to pay the purchase price in full, how will your legal rights be protected?
These are fact-specific issues you will likely need to discuss with the Internet business attorney who is drafting your website sales agreement.
In fact, it’s a good idea to get some of these questions answered before you put your website on the market so that you have more realistic expectations of what will happen when you find a qualified buyer who is ready, willing, and able to purchase your site.
Related Article: 7 Keys To Picking The Right Internet Lawyer For Your Business
If you’re interested in having Internet Lawyer Mike Young prepare your website sales agreement, your first step is to set up a telephone consultation with him.