Cash Investment Agreement
September 13, 2021
This agreement is a classic investment agreement in which the existing shareholders of a company (who are often the original founders of the company) enter into an agreement with an investor who invests money in the company in exchange for shares in the company. This is an alternative mode of financing for a company rather than looking for a bank or a private loan. Party A invests 260 million (260,000,000) Korean won immediately after the signing of this agreement, on the condition described here. According to an article in Chron, the law requires private companies that intend to sell shares and shares a written business agreement. A legally binding contract will help protect both the business owner and the investor, including its resources, from potential conflicts. So before starting an investment transaction, it is important to first have a written business agreement. This is where an investment contract comes in. An investment contract is a legally binding contract containing information about the investment contract. It is a joint agreement between a company and an investor that contains terms of sale, roles and responsibilities of both parties. In principle, the operating investment agreement defines the parameters of the investment.
There are also specific clauses that should be included in the contract, which protect both the company and the investor. The following information to be included in the investment contract is the conditions and termination of the contract. The term refers to the period during which the contract is valid and is in force. .