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Asset Purchase Agreement Term Sheet Template for United Arab Emirates

A preliminary agreement document governed by UAE law that outlines the key terms and conditions for the purchase of assets between parties. This document serves as a foundation for the subsequent detailed asset purchase agreement, capturing essential commercial terms including asset description, purchase price, payment terms, and key conditions. The term sheet incorporates UAE-specific legal requirements and considerations, including relevant provisions from the UAE Civil Code and Commercial Code, while maintaining flexibility for negotiation of detailed terms in the final agreement.

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What is a Asset Purchase Agreement Term Sheet?

The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in the UAE business environment when parties are contemplating the purchase and sale of business assets. It serves as a roadmap for the transaction, outlining the fundamental terms and conditions while allowing for further negotiation and detail in the final agreement. This document is particularly important in the UAE context as it needs to comply with local laws including the UAE Civil Code, Commercial Code, and where applicable, industry-specific regulations. The term sheet typically precedes the full asset purchase agreement and includes essential elements such as asset identification, pricing, payment structure, conditions precedent, and timeline, while considering UAE-specific requirements such as foreign ownership restrictions and regulatory approvals.

What sections should be included in a Asset Purchase Agreement Term Sheet?

1. Parties: Identification of buyer and seller, including full legal names and addresses

2. Background: Brief context of the transaction and purpose of the term sheet

3. Definitions: Key terms used throughout the term sheet

4. Assets to be Purchased: Clear description of assets included in the transaction

5. Purchase Price: Amount and currency of consideration, including any adjustments

6. Payment Terms: Structure and timing of payments, including any deposits or installments

7. Closing Conditions: Key conditions that must be satisfied before closing

8. Timeline: Expected dates for key milestones including due diligence, signing, and closing

9. Exclusivity: Period during which seller cannot negotiate with other parties

10. Confidentiality: Obligations regarding transaction information and negotiations

11. Binding Effect: Specification of which terms are binding and non-binding

12. Governing Law: Confirmation of UAE law application and jurisdiction

What sections are optional to include in a Asset Purchase Agreement Term Sheet?

1. Due Diligence: Detailed process and scope of due diligence investigation - include if extensive due diligence is anticipated

2. Regulatory Approvals: Required governmental or regulatory approvals - include if transaction requires specific approvals

3. Employee Matters: Treatment of employees and related liabilities - include if employees are being transferred

4. Intellectual Property: Special provisions for IP transfers - include if IP assets are significant

5. Real Estate: Special provisions for real property transfers - include if real estate is involved

6. Environmental Matters: Environmental compliance and liabilities - include if environmental risks exist

7. Tax Structure: Proposed tax treatment - include if transaction has complex tax implications

8. Financing: Financing arrangements - include if purchase is subject to financing

9. Post-Closing Covenants: Post-closing obligations - include if ongoing obligations are contemplated

10. Break Fee: Break fee provisions - include if significant transaction costs anticipated

What schedules should be included in a Asset Purchase Agreement Term Sheet?

1. Asset Schedule: Detailed list and description of assets to be purchased

2. Excluded Assets: List of specific assets excluded from the transaction

3. Purchase Price Allocation: Breakdown of purchase price across asset categories

4. Key Contracts: List of material contracts included in the purchase

5. Required Consents: List of third-party consents needed for the transaction

6. Key Employees: List of key employees if relevant to the transaction

7. Timeframe Schedule: Detailed timeline of key dates and milestones

8. Due Diligence Checklist: Preliminary list of required due diligence items

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Cost

Free to use

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