A Deposit Agreement of Purchase and Sale is essential in Singapore commercial transactions where significant purchases require security through deposits. This document type is commonly used when parties need to formalize their commitment to a transaction while protecting both parties' interests during the period between agreement and completion. The agreement typically specifies deposit amounts, holding arrangements, release conditions, and forfeiture terms, all within Singapore's legal framework. It's particularly crucial in high-value transactions where parties need clear documentation of their rights and obligations regarding the deposit.
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1. Parties: Identifies and defines the contracting parties
2. Background: Provides context and purpose of the agreement
3. Definitions: Defines key terms used throughout the agreement
4. Purchase Price and Deposit: Specifies the total purchase price and deposit amount
5. Payment Terms: Details the payment schedule and method
6. Deposit Handling: Specifies how the deposit will be held and managed
7. Conditions Precedent: Lists conditions that must be met before completion
8. Completion: Details the completion process and requirements
9. Default Provisions: Specifies consequences of default by either party
1. Due Diligence: Include when buyer requires inspection or investigation period for complex transactions or high-value purchases
2. Warranties: Specific warranties about the subject of sale, included when additional assurances are required
3. Tax Provisions: Specific tax-related obligations, included when transaction has significant tax implications
4. Force Majeure: Provisions for unforeseen circumstances, included when extended completion timeframe is anticipated
1. Property Description Schedule: Detailed description of property or goods being purchased
2. Payment Schedule: Detailed breakdown of payment terms and dates
3. Due Diligence Checklist: List of required documents and investigations
4. Form of Transfer: Template for transfer documentation
5. Completion Checklist: List of items required for completion
Relevant legal definitions
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