Boilerplate

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What It Means

Boilerplate refers to language or an agreement that is considered standardized and is reused multiple times.

Why It’s Important

Business Brokers, Buyers, lawyers and other deal makers will often use the term Boilerplate when describing contract language. This reference is meant to alleviate concerns that an agreement may contain terms that benefit the party providing the agreement, but this may or may not be true. It’s important to recognize that terms and conditions which are considered “Market” change over time. The best way to ensure that the terms of an agreement are currently Market is to consult an advisor that has recent experience. If a broker or attorney typically handles real estate transactions, they probably aren’t the right person to be providing advice on the sale of a business where real estate is a small part of the overall transaction value.

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