The Pre Purchase Agreement serves as an essential preliminary contract in Belgian commercial and property transactions, establishing the framework for a future purchase while protecting both parties' interests during the negotiation phase. This document is typically used when parties have reached initial agreement on key commercial terms but require a formal structure for due diligence, exclusivity, and condition precedents before proceeding to a final purchase agreement. Under Belgian law, particular attention must be paid to regional requirements, language obligations (French, Dutch, or German depending on the region), and specific sectoral regulations. The agreement needs to balance the interests of both parties while ensuring compliance with Belgian civil law, consumer protection regulations, and relevant EU directives. It is particularly crucial in complex transactions where significant due diligence is required or where parties need to secure financing or regulatory approvals before proceeding with the final purchase.
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1. Parties: Identification and details of the buyer and seller, including full legal names, addresses, and registration details for companies
2. Background: Context of the transaction, including brief description of the asset/property and the parties' intention to enter into a future purchase agreement
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter: Detailed description of the asset/property being considered for purchase
5. Purchase Price and Payment Terms: Proposed purchase price, deposit requirements, payment schedule, and payment methods
6. Due Diligence: Terms and conditions for the buyer's investigation of the asset/property, including timeframes and access rights
7. Conditions Precedent: Conditions that must be satisfied before the final purchase agreement can be executed
8. Exclusivity Period: Duration and terms of exclusive negotiation rights granted to the potential buyer
9. Confidentiality: Obligations regarding confidential information exchanged during the pre-purchase process
10. Representations and Warranties: Basic representations by both parties regarding their capacity to enter into the agreement
11. Term and Termination: Duration of the pre-purchase agreement and circumstances under which it can be terminated
12. Governing Law and Jurisdiction: Confirmation of Belgian law as governing law and jurisdiction for disputes
13. Execution: Signature blocks and execution formalities
1. Break Fee: Include when parties agree to a fee payable if either party withdraws from the transaction under specified circumstances
2. Financing Conditions: Include when the buyer's obligation is contingent on obtaining financing
3. Regulatory Approvals: Include when the transaction requires specific regulatory or governmental approvals
4. Language Provisions: Include when the agreement needs to be executed in multiple languages due to Belgian regional requirements
5. Asset Management During Interim Period: Include for complex assets requiring management between signing and closing
6. Tax Provisions: Include when specific tax arrangements or implications need to be addressed
7. Employee Matters: Include when the purchase involves transfer of employees or employment-related obligations
8. Environmental Provisions: Include when environmental investigations or warranties are required
1. Schedule 1 - Asset Description: Detailed technical or legal description of the asset/property
2. Schedule 2 - Due Diligence Requirements: List of required documentation and information for due diligence
3. Schedule 3 - Form of Purchase Agreement: Draft or outline of the final purchase agreement to be executed
4. Schedule 4 - Required Consents: List of third-party or regulatory consents required
5. Schedule 5 - Disclosure Schedule: Seller's disclosures regarding the asset/property
6. Appendix A - Payment Schedule: Detailed breakdown of payment terms and timing
7. Appendix B - Due Diligence Timeline: Detailed timeline for completion of due diligence activities
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