A share means a unit of ownership in the company and the number of shares represents the stake of a shareholder in the company. Share purchase agreement is an agreement that includes a seller and a buyer. Seller is selling its shares of the company and the buyer would be the one buying those shares. This share purchase agreement would contain the number of shares to be sold and the price of such shares.
Prior to the formation of this share purchase agreement, the buyer is obligated to do some due diligence for the purpose of complying with the letter of intent. The letter of intent’s terms and the term of shareholder shall not be contradicting to each other. If some misrepresentations of warranties and responsibilities are found, then a proper legal action and recourse will be initiated against the seller or the seller will reimburse the buyer. This deal is way less complicated than that of an asset purchase agreement.