I have a client who is wishing to purchase a cement truck, the seller is wanting the transaction to be as a going concern however the seller is not selling the business as a whole he is selling one of his trucks and continues to have others in operation so in which case the buyer can then obtain approval to work from the cement company. The contract is not being sold with the truck only a promise that the work will be available subject to approval by the cement company.
The seller also wishes to transfer ownership from current trading company to another company he states has substantial losses so that the going concern can be absorbed?
I believe the sale should just be of the sale of asset including GST and therefore an invoice issued rather than a self created contract and any agreement of obtaining work will be sought after the purchase and not as part of the purchase.
Can someone please give me their opinion on this as the seller is confusing both myself and the client.
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