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johnpico 03-02-2016 05:33 AM

Dealership Buy-Sells - Understanding the Words
Everyday dealers enter into buy-sell agreements and have no idea what the words mean.

I recently worked with a long-time "automotive" attorney that told me he used the same buy-sell agreement for every deal, whether he was representing the buyer or the seller.

He said the parties would eventually reach the agreement he proposed, so he saved everyone time and money by just changing the names and addresses in his template and no one has ever complained. An unbelievable, but true story.

Dealership buy-sells are technical documents. One preposition and one verb could change the price a quarter million dollars or more. I have seen it! A comma here or there, or an adjective inserted in the right place could change the entire meaning of the document.

There are dozens of instances in buy-sells where dealers left hundreds of thousands of dollars on the table, or paid hundreds of thousands they did not have to pay. And when they left the closing table, neither the parties nor their advisers ever knew what they did.

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XDCX 03-02-2016 09:34 AM

Thanks for creating the thread. :)

I'm tight on time at the moment so I'll wait to add my thoughts/questions when I get back from my trip.

I quickly scanned the article you linked and can see how important the wording on a contract can be and how significant the ramifications can be if both parties to the agreement don't share the same interpretation.

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