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Simple English definitions for legal terms
bulk sale
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A quick definition of bulk sale:
A bulk sale is when someone sells a lot of things from their business all at once, instead of selling things like they normally do. These things can be physical things like property or things that aren't physical like ideas or good reputation. If someone sells things in the normal way they do business, that's not a bulk sale. For example, if a store sells things to customers, that's not a bulk sale.
A more thorough explanation:
A bulk sale refers to the sale, transfer, or assignment of business assets that are not part of the regular business operations of a person or entity. These assets can include physical property, such as real estate or equipment, as well as intangible assets like intellectual property or goodwill.
It's important to note that a bulk sale is different from a regular sale made within the normal course of business. For example, if a retail store sells products to customers, that is not considered a bulk sale.
- When a restaurant owner sells all of their kitchen equipment to another restaurant owner, that would be considered a bulk sale.
- If a software company sells their patent rights to another company, that would also be a bulk sale.
These examples illustrate how a bulk sale involves the transfer of assets that are not part of the regular business operations. In both cases, the sale is not something that would happen on a regular basis, but rather a one-time event that involves a significant amount of assets.