An Asset Purchase Agreement is a binding legal document that outlines the terms and conditions of the purchase and sale of assets from one party to another. It typically includes provisions for the transfer of intellectual property rights, warranties, indemnification, financing, delivery, taxes and insurance. It also outlines the liabilities associated with the asset being sold, including any restrictions or prohibitions on its use. The Asset Purchase Agreement must be signed by both parties in order to be legally binding. With an educated understanding of these intricately detailed contracts, businesses can protect their investments while ensuring they receive the best value for their assets.