Sale and purchase of a business

Frankie decides to sell the fast-food caravan business and, after a short search, finds interested buyers, Deacon Dell and his sister Deb Dell. Deacon and Deb are directors of a company called DD Delights 2021 Ltd. They are interested in buying the business both because it has fully equipped food caravans and because the business has licences to park caravans on certain city council grounds. They intend buying Frankies business through their company. In answering the questions that follow, refer to relevant provisions (clauses) of the Agreement for the Sale and Purchase of a Business.

a) Identify the vendor and the purchaser in this sale and purchase.

b) Frankie is concerned that DD Delights 2021 Ltd may not go ahead with the sale

i) You tell Frankie that she can get some money upfront and that she can keep this money if the sale does not go through. Name and describe the mechanism that you are referring to and identify the clause that provides for this.

ii) Frankie is still worried. She wants to hold Deacon and/or Deb personally liable if their company decides not to go ahead with the purchase. Name and describe the mechanism that might be used to hold Deacon and/or Deb personally liable and identify the clause in the contract that deals with this.

c) From the given scenario, identify a tangible asset being sold and an intangible asset being sold.