One way for a business buyer to avoid being surprised by liens against the assets purchased is to include a clause in the sales contract stating that any liability not shown on the balance sheet at the time of the sale remains the responsibility of the seller.

Question

Quizplus · Accepted Answer

By including this clause in the sales contract, the buyer can ensure that they will not be held responsible for any hidden liens or liabilities that were not disclosed at the time of the sale. This adds an extra layer of protection for the buyer and encourages the seller to be upfront about any outstanding debts or obligations.

One Way for a Business Buyer to Avoid Being Surprised