The Deposit On Sales Contract is essential in Singapore business transactions where a deposit is required to secure a sale. This document establishes the legal framework for the deposit payment, protecting both buyer and seller interests. It typically includes details about the deposit amount, payment terms, conditions for completion, and circumstances for refund or forfeiture. Under Singapore law, this contract type must comply with various legislation including the Civil Law Act and Sale of Goods Act, making it a crucial tool for risk management in sales transactions.
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1. Parties: Identification and details of contracting parties
2. Background: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Subject Matter of Sale: Detailed description of goods/property being sold
5. Purchase Price: Total price and payment terms
6. Deposit Terms: Amount, payment schedule, and conditions of deposit
7. Completion: Terms and timing of final transaction completion
8. Governing Law: Specification of Singapore law as governing law
1. Conditions Precedent: Conditions that must be met before completion - used for complex transactions or when specific prerequisites exist
2. Due Diligence: Buyer's right to investigate the subject matter - used for high-value transactions or business sales
3. Warranties: Seller's guarantees about the subject matter - used when specific assurances are required
4. Force Majeure: Provisions for unforeseen circumstances - used for longer-term contracts or high-value transactions
1. Schedule 1 - Property/Goods Description: Detailed specification of items being sold
2. Schedule 2 - Payment Schedule: Breakdown of deposit and payment installments
3. Schedule 3 - Completion Requirements: List of documents and actions required for completion
4. Appendix A - Due Diligence Requirements: List of documents to be provided for due diligence (for complex transactions)
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