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Buy Back Option Contract
"I need a Buy Back Option Contract for a commercial property sale in Manila, Philippines, where I want to retain the right to repurchase the property within 18 months until June 2025, with the initial sale price of 25 million pesos and a buy-back price of 28 million pesos."
1. Parties: Identification of the seller (who will have the buy-back right) and the buyer, including their complete legal names, addresses, and tax identification numbers
2. Background: Context of the transaction, including the original sale and the agreement to grant a buy-back option
3. Definitions: Key terms used throughout the agreement, including 'Option Period', 'Purchase Price', 'Buy-Back Price', and 'Exercise Notice'
4. Sale and Purchase: Details of the initial sale transaction including the asset description and initial purchase price
5. Grant of Buy-Back Option: Explicit grant of the option to buy back the asset, including the option period and exercise price
6. Exercise of Option: Procedure for exercising the buy-back option, including notice requirements and payment terms
7. Warranties and Representations: Statements regarding ownership, authority to sell, and condition of the asset
8. Maintenance and Use of Asset: Obligations regarding the maintenance and permitted use of the asset during the option period
9. Taxes and Expenses: Allocation of taxes, registration fees, and other costs related to both the initial sale and potential buy-back
10. Governing Law and Jurisdiction: Specification of Philippine law as governing law and choice of courts
11. Execution: Signature blocks and execution requirements
1. Security Provisions: Required when the asset needs specific security arrangements during the option period
2. Insurance: Needed when the asset requires insurance coverage during the option period
3. Third Party Rights: Include when there are potential third-party interests or rights that need to be addressed
4. Assignment: Include when either party may need to assign their rights under the contract
5. Force Majeure: Include when the nature of the asset or transaction warrants protection against unforeseeable circumstances
6. Mortgage Provisions: Required when the asset is or may be subject to a mortgage
7. Registration Requirements: Include when the asset requires specific registration (e.g., real property, vehicles)
1. Schedule 1 - Asset Description: Detailed description of the asset including specifications, condition, and any identifying numbers
2. Schedule 2 - Initial Purchase Price Calculation: Breakdown of the initial purchase price including any adjustments
3. Schedule 3 - Buy-Back Price Calculation: Formula or fixed amount for the buy-back price, including any adjustments or interest
4. Schedule 4 - Form of Exercise Notice: Template notice for exercising the buy-back option
5. Schedule 5 - Condition Report: Detailed report of the asset's condition at the time of initial sale
6. Appendix A - Required Documents: List of documents required for both initial sale and buy-back transaction
7. Appendix B - Payment Terms: Detailed payment terms and procedures for both initial sale and buy-back
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Real Estate
Manufacturing
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Agriculture
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Automotive
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Small and Medium Enterprises
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Finance
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Real Estate
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Treasury
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Chief Financial Officer
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