Legal Question in Business Law in Minnesota

Re: Difference between asset purchase agreement and buy out

Asset purchase agreement: Agreement under which you buy assets only. You want to buy the assets, not the liabilities. Don't buy the company itself, just buy what it owns. Let them keep their problems.

Buy out agrement: usually refers to a contract between co-owners covering what happens to the business if one of them dies or becomes disabled or wants to sell their share of the business. If you have partners, you really need this - unless you don't care if a new partner shows up who you don't even know.

Hope this helps.