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Buy Back Option Contract Template for Philippines

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Key Requirements PROMPT example:

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."

Document background
The Buy Back Option Contract is a specialized agreement commonly used in Philippine business transactions where parties wish to structure a sale with a repurchase right. This document is particularly relevant in situations where a seller needs immediate liquidity but anticipates having the means and desire to reacquire the asset in the future. The contract must comply with Philippine Civil Code provisions, especially Articles 1601-1606 governing sales with right to repurchase, and includes essential elements such as the option period, purchase price, buy-back terms, and conditions for exercise. It's frequently used in real estate transactions, business asset sales, and financial arrangements, providing flexibility while protecting both parties' interests through clear terms and conditions.
Suggested Sections

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

Optional Sections

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)

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ 黑料视频 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions






































Clauses






























Relevant Industries

Real Estate

Manufacturing

Financial Services

Retail

Agriculture

Technology

Automotive

Mining

Construction

Small and Medium Enterprises

Relevant Teams

Legal

Finance

Compliance

Risk Management

Real Estate

Business Development

Asset Management

Treasury

Corporate Affairs

Investment

Relevant Roles

Legal Counsel

Corporate Lawyer

Business Development Manager

Chief Financial Officer

Real Estate Manager

Asset Manager

Contract Administrator

Property Manager

Finance Director

Compliance Officer

Risk Manager

Transaction Manager

Business Owner

Investment Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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