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Legal SSPA Document

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SERVICE AND SOFTWARE PURCHASE AGREEMENT (SSPA)

This Service and Software Purchase Agreement (the "Agreement") is entered into as of by and between Client Name: , a , with its principal place of business at ; and Provider Name: , a , with its principal place of business at .

RECITALS

WHEREAS, Provider develops, licenses and delivers software and related professional services, and Client desires to purchase certain software, services and deliverables as set forth in this Agreement;

WHEREAS, Provider has represented that it possesses the expertise and resources to perform the services and provide the software described herein, and Client desires Provider to perform such services and supply the software under the terms and conditions of this Agreement;

WHEREAS, the parties wish to set forth their respective rights and obligations with respect to the provision of services, delivery of software and acceptance of deliverables.

NOW THEREFORE, in consideration of the mutual covenants set forth below, the parties agree as follows:

1. DEFINITIONS

1.1 "Software" means the object code of the software products described in Exhibit A and any updates, enhancements or modifications supplied by Provider. "Services" means the professional services and implementation work described in the Scope of Work. "Deliverables" means tangible or electronic items to be delivered to Client under this Agreement.

2. SCOPE OF SERVICES AND PRODUCTS

2.1 Provider shall perform the Services and supply the Software and related Deliverables in accordance with the scope described below and in any attached Statement of Work executed by the parties.

3. DELIVERABLES; ACCEPTANCE

3.1 Provider shall deliver Deliverables in accordance with the delivery schedule. Client shall have a period of days following delivery to inspect and test the Deliverables. Failure to provide written rejection specifying nonconformities within such period shall constitute acceptance.

4. LICENSE AND OWNERSHIP

4.1 Provider grants to Client a non-exclusive, non-transferable license to use the Software solely for Client's internal business purposes, subject to payment of fees and compliance with this Agreement.

4.2 Provider retains all right, title and interest in pre-existing software, tools and know-how. Unless otherwise expressly assigned in writing, Provider shall retain ownership of all intellectual property embodied in general purpose software and tools used to develop Deliverables.

5. FEES, PAYMENT AND INVOICING

5.1 Client shall pay Provider the fees set forth below and in any Statement of Work. All fees are due in accordance with agreed payment milestones and invoices will be due within thirty (30) days of invoice date unless otherwise stated.

6. TAXES

6.1 All fees are exclusive of taxes. Client shall be responsible for sales, use, value-added, withholding and other taxes arising from the transactions under this Agreement, except taxes based on Provider's net income.

7. TERM; TERMINATION

7.1 The term of this Agreement shall commence on and continue until unless earlier terminated as provided herein.

7.2 Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure within days after written notice.

8. CONFIDENTIALITY

8.1 Each party shall maintain in confidence all Confidential Information disclosed by the other party and shall not use or disclose such information except as necessary to perform under this Agreement. Confidential Information excludes information that is publicly known or rightfully received from a third party.

8.2 The obligations of confidentiality shall survive termination for a period of five (5) years, or as otherwise required by applicable law with respect to trade secrets.

9. WARRANTIES; DISCLAIMER

9.1 Provider warrants that it will perform Services in a professional and workmanlike manner and that, at time of delivery, the Software will materially conform to the written specifications for a period of ninety (90) days. Client's sole remedy for breach of this warranty shall be re-performance or repair of nonconforming Services or Software.

9.2 EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT.

10. INDEMNIFICATION

10.1 Provider shall defend, indemnify and hold Client harmless from third party claims alleging that the Software, as delivered and used in accordance with this Agreement, infringes a valid patent, trademark or copyright. Provider's obligations are conditioned upon Client providing prompt written notice of any claim and reasonable cooperation in the defense. Provider shall have no obligation for claims arising from Client modifications, combination with third party products, or Client's negligence.

10.2 Client shall indemnify Provider from claims arising from Client's misuse of the Software or breach of its obligations under this Agreement.

11. LIMITATION OF LIABILITY

11.1 EXCEPT FOR WILLFUL MISCONDUCT, GROSS NEGLIGENCE OR EACH PARTY'S INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING LOST PROFITS. PROVIDER'S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE FEES PAID BY CLIENT TO PROVIDER IN THE TWELVE (12) MONTHS PRECEDING THE CLAIM.

12. INTELLECTUAL PROPERTY; ASSIGNMENT OF DELIVERABLES

12.1 Unless otherwise agreed in writing, Provider shall retain ownership of Provider's pre-existing materials. Upon full payment of fees due for custom Deliverables, Provider assigns to Client all proprietary rights, title and interest in and to such custom Deliverables to the extent assignable. Provider retains a non-exclusive, royalty-free license to use non-confidential general knowledge and routines for any purpose.

13. DATA PROTECTION AND SECURITY

13.1 Provider shall implement and maintain administrative, physical and technical safeguards reasonably designed to protect Client Data against unauthorized access, use or disclosure. Provider shall notify Client promptly upon becoming aware of any security breach affecting Client Data.

14. INSURANCE AND COMPLIANCE

14.1 Provider shall maintain commercial general liability and professional liability insurance with minimum limits of and shall provide certificates upon reasonable request.

15. NOTICES

15.1 All notices required under this Agreement shall be in writing and delivered to the addresses set forth below or such other address as a party designates by written notice.

16. AMENDMENT; WAIVER

16.1 No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties. Failure to enforce any right shall not constitute a waiver of that right.

17. GOVERNING LAW

17.1 This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to its conflicts of law principles.

18. ENTIRE AGREEMENT

18.1 This Agreement, together with any exhibits and Statements of Work executed by the parties, constitutes the entire agreement between the parties and supersedes all prior and contemporaneous agreements, proposals or representations, whether written or oral, relating to the subject matter hereof.

19. SEVERABILITY

19.1 If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall continue in full force and effect and the invalid provision shall be reformed only to the extent necessary to make it enforceable.

20. COUNTERPARTS; ELECTRONIC SIGNATURES

20.1 This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which shall constitute one and the same instrument. Signatures transmitted by electronic means shall be as effective as original signatures.

Client:

By:

Date:

Provider:

By:

Date:

Enter text✕

What the Legal SSPA Document Is and When It Applies

A Legal SSPA Document (typically a Share Sale and Purchase Agreement or Stock Sale and Purchase Agreement) sets the terms for transferring ownership interests between a seller and a buyer. It allocates purchase price, representations and warranties, indemnities, closing conditions, and post‑closing obligations. The SSPA records rights and risks, identifies required approvals and third‑party consents, and specifies governing law and dispute resolution. In the United States, an electronically executed SSPA can be enforceable under the ESIGN Act (15 U.S.C. §7001) and state UETA statutes where applicable.

Why a Proper SSPA Matters for Transactions

A clear SSPA reduces ambiguity on price, liabilities, and closing conditions, supports enforceability in disputes, and documents risk allocation between parties under applicable state law and federal commerce statutes.

Why a Proper SSPA Matters for Transactions

Typical Parties and Professionals Using an SSPA

The Legal SSPA Document is used by transactional parties and their advisors during acquisitions, divestitures, and equity transfers.

  • Corporate buyers and investors who need precise purchase terms and representations.
  • Sellers and management teams documenting retained liabilities and post-closing covenants.
  • Law firms and in-house counsel preparing due diligence, indemnities, and closing deliverables.

Each signer’s role (buyer, seller, guarantor) and authority should be clear to prevent execution defects and ensure smooth closing.

Stepwise process to complete and execute the SSPA

Follow these sequential steps to prepare, negotiate, and finalize a legally valid SSPA with clear execution records.

  • 01
    Draft: Prepare initial draft with key commercial terms and schedules.
  • 02
    Negotiate: Exchange redlines and resolve representations and indemnities.
  • 03
    Execute: Obtain authorized signatures and required consents.
  • 04
    Close: Deliver closing items, transfer consideration, and record filings.

Frequently asked practical and legal questions

Common execution and post‑closing issues for SSPAs and concise guidance for resolving them.


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Core sections to include in a professional SSPA

A complete SSPA groups commercial and legal protections into discrete sections so parties can quickly identify obligations, risk allocation, and closing mechanics.

Purchase Price

Defines total consideration, payment mechanics, escrow or holdback terms, currency, and adjustments for working capital or liabilities.

Representations

Seller and buyer statements about authority, title, compliance, and factual matters that underpin indemnity obligations.

Warranties & Indemnities

Scope, survival period, caps, baskets, and procedures for claiming losses following breaches or third‑party claims.

Conditions to Closing

Pre‑closing deliverables, regulatory approvals, consents, and third‑party waivers required before transfer of ownership.

Covenants

Pre- and post-closing obligations such as noncompete, confidentiality, transitional services, and cooperation on filings.

Governing Law

Choice of state law and dispute resolution method (arbitration or courts), plus venue and enforcement provisions.

Technical and compliance safeguards for electronic SSPAs

Encryption in transit: TLS 1.2/1.3
Encryption at rest: AES-256
Audit Trail: Detailed timestamps and IP logs
SOC 2: SOC 2 Type II
HIPAA support: HIPAA compliance (BAA required)
Regulatory Support: 21 CFR Part 11 readiness

Key legal risks and potential penalties

Misrepresentation: Indemnity claims and damages
Tax exposure: IRS adjustments and penalties
Breach of warranty: Litigation and indemnity costs
Missing signatures: Enforceability challenges
Late filings: Reporting penalties may apply
Invalid transfer: Title defects or regulatory rejection

Common preparation and execution pitfalls

  • Using vague consideration language that leaves price adjustments undefined, which causes post‑closing disputes and valuation disagreements.
  • Failing to attach or update schedules (liabilities, contracts, permits), which can create hidden obligations and breach claims.
  • Not confirming signatory authority or corporate resolutions, resulting in ineffective transfers or the need for ratification.
  • Skipping required third‑party consents or regulatory filings, which delays closing and can trigger termination rights.

How electronic execution and closing typically proceeds

Electronic workflows reduce manual handoffs and preserve a verifiable audit trail from negotiation through closing.

  • Upload SSPA: Add final PDF or DOCX version for signing.
  • Place Fields: Insert signature, date, and initial fields for each party.
  • Send to Signers: Specify signing order and authentication.
  • Finalize: Capture completed agreement and audit certificate.

Configure your signing workflow for the document

Recommended workflow settings reduce execution friction and preserve legal evidence for the transaction record.

Field Configuration
Signing Order Sequential order with buyer then seller
Authentication Email link plus optional SMS code
Reminders Auto reminders at 3 and 7 days
Final Delivery PDF with audit trail to all parties

Technical channels and file formats for electronic SSPAs

Choose platforms and formats compatible with your legal and IT stack to ensure preservation and access.

  • Integrations: Salesforce, NetSuite, Microsoft 365
  • Supported Formats: PDF, DOCX, HTML
  • Audit & Storage: Secure cloud storage and export

Ensure chosen systems support required access controls, retention policies, and exportable audit logs for compliance.

Typical timeline items and contractual deadlines

SSPAs define specific dates and periods to coordinate due diligence, approvals, closing, and post-closing obligations.

Effective Date:

Date obligations commence as specified in the agreement.

Due Diligence Period End:

Commonly 30–60 days to complete buyer review and raise issues.

Closing Date:

Date when deeds, certificates, and consideration are exchanged.

Tax Reporting Deadline:

Seller and buyer align reporting for the relevant tax year.

Post-Closing Obligations:

Survival periods for reps and covenants stated by duration.

Vendor pricing snapshot for eSignature platforms used on SSPAs

Comparison shows starting price and select feature availability; signNow is listed first per platform comparison conventions.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by vendor Varies by vendor Varies by vendor Varies by vendor
Bulk Send Yes Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies
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