33 terms of the contract can be contested in court. Elon Musk and Twitter are both claiming that each party breached different provisions of their binding agreement. The entrepreneur is relying on the agreement to terminate his obligations to buy the social media company, whilst Twitter is leaning on the agreement to force Musk to complete his proposed purchase. In England, a legally binding agreement for the sale and purchase of a business is normally only entered into at the time of the sale. Parties usually use the form of ‘Heads of Terms’ to agree principle terms in advance of the main negotiations, but the majority of the content of that document will be non-legally binding and is simply used to identify the fundamental terms of the deal, and to iron out any issues that may require further negotiation. Before any party enters into any form of binding legal agreement, detailed consideration needs to be undertaken, from a dual due diligence process, right through to detailed negotiations of fundamental terms. By having clear objectives for the purpose of the sale and an intended vision for an appropriate buyer, a CEO can ensure that by the time they reach this stage of the agreement, there’s considerably less scope for significant differences. This approach will help reduce the potential for drawn out and fractious sales processes and those that risk leaving a bitter taste created by unexpected twists and turns. About Forbes Solicitors Forbes Solicitors is an award-winning law firm, with 10 offices across England that looks after the interests of clients nationwide. The firm has 57 partners and an overall headcount of nearly 400, advising on a wide range of commercial and personal matters. Forbes specialises in supporting SMEs, providing legal expertise in practice areas including litigation, commercial, corporate legal services, employment, insurance, commercial property and individual services. Forbes holds the ISO9001 Quality Certification and in its recent assessment it was described as “exceptional”. The firm is ranked as a Legal 500 Top Tier Firm and a Chambers and Partners Leading Firm, receiving 70 nominations in the latest editions. Furthermore, a number of its partners are included in the elite “Leading Individuals” list, the “Next Generation Lawyers” list, and 41 of Forbes’ solicitors are listed as recommended lawyers. Forbes is also a member of LawPact® - the international association of independent business law firms – which supports the expansion of its national and global reach.
RkJQdWJsaXNoZXIy Mjk3Mzkz