Legal Definitions - lumping sale

A lumping sale refers to a transaction where multiple distinct items, assets, or components are sold together as a single unit for an aggregate price, rather than being itemized and priced individually. This type of sale often occurs when the seller intends to dispose of a collection of related items without valuing each one separately.

• Example 1: Business Asset Sale
  A small independent bookstore owner decides to retire and sells their entire business to a new entrepreneur. The sale includes all the bookshelves, the point-of-sale system, the remaining book inventory, and the store's established customer list, all for one lump sum price of $120,000.

  This is a lumping sale because numerous individual assets (bookshelves, POS system, inventory, customer list) are bundled and sold together for a single, overall price, rather than each item being individually valued and sold.

• Example 2: Real Estate and Personal Property
  A homeowner sells their property, which includes the main residence, a guest cottage on the same lot, and all the major appliances (refrigerator, stove, washer, dryer) currently in the home, all under one purchase agreement for a single price.

  This illustrates a lumping sale because the buyer is acquiring multiple distinct components (the main house, the guest cottage, and several appliances) as a single package for one combined price, rather than purchasing each element separately.

• Example 3: Collection Sale
  An art collector decides to sell their entire private collection of contemporary sculptures, consisting of ten unique pieces by various artists, to a museum for a single negotiated price of $500,000.

  This is a lumping sale because a collection of individual items (ten distinct sculptures) is grouped and offered for sale as a single unit, with the buyer paying one price for the entire collection rather than buying each sculpture individually.