Change first name in the Stock Purchase Agreement

Aug 6th, 2022
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How to change first name in the Stock Purchase Agreement

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- When youre buying a property its very important to make sure you know what name is actually going on the contract. Now that may seem obvious or a little bit crazy to say, but we often have people who are unsure if its going to go in one persons name or both parties names, for example husband and wife. One name only, both names. Two brothers, one name or both names. Or individual names, or a company, or a business name, or a superannuation fund, family trust. A whole range of different things. Whats important is that before you come to purchase the property, that you check with your broker, your solicitor, perhaps your accountant, as to what name will actually go on the contract for sale, because its a legally binding document. We had one incident recently, people bought a property at auction. They wanted to change from an individual name into a company name. The perception was, quite simple to do, but when youve entered a binding contract at auction with no cooling-off period

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Even if an action was brought against the company for changing the name, it would likely be found that the contract is upheld. The law favors the validity of contracts, and would not find the contract to be invalid unless there appeared to be an intention to deceive or mislead by using a different name.
A novation agreement may be part of an original contract, or it may need to be signed at the time of the change. In the case of a name change, for example, a novation agreement might be needed in order to make a new contract with the newly named business.
If a company changes its name, a contract will still be valid. However, before we can discuss the validity of a contract after a company changes its name, business owners should first understand contract law, and the requirements for entering into contracts with other parties.
You can use a contract amendment letter to list the changes to the original document and have both parties sign. You can create a contract amendment created from a template or from a legal services provider. You can add amendment pagesdigital or printto the end of the original signed contract.
Letters or verbal notification between buyers/contract managers and suppliers cannot be used to modify the terms (scope of work, pricing, etc.) of a contract/purchase document. Changes/amendments must be formally executed in writing (written, signed/approved in system, approved) to modify a contract/purchase document.
The addendum should clearly state the old company name, the new company name, and the effective date of the name change. It should be signed and dated by authorized representatives of the company. 3. Is it necessary to notify all stakeholders about a company name change?
Yes because it is a legal declaration that the person is changing their name from X to Y so all legal ramifications of that follow them. Absolutely. If the contract was legal and accepted by signing, the fact that the signer changed his/her name should not void the contract.

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