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An APA typically includes several critical components:

1. **Description of Assets and Liabilities**: Clearly outlines which assets are being acquired and any liabilities the buyer will assume.

2. **Purchase Price and Payment Terms**: Details how much is being paid for the assets and the method of payment.

3. **Representations and Warranties**: Statements of fact made by both parties, which, if untrue, can lead to legal consequences.

4. **Covenants**: Agreements to perform or refrain from specific actions during and after the transaction.