this business sale agreement is for use when the owner of a business sells the business to a new owner. if they are not, then one party or the other (or in some cases, both parties) may have the right to pull out of the agreement. this document can be used when a vendor and purchaser are getting ready to enter into a new contract for the purchase of the business. the business transfer agreement will be legally binding when it has been printed on non-judicial stamp paper or e-stamp paper and signed by both the vendor and the purchaser and has been dated.