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Commercial Offer To Purchase Template for England and Wales

A Commercial Offer to Purchase is a formal document used under English and Welsh law to initiate the purchase of commercial property or business assets. It outlines the terms and conditions under which the buyer proposes to purchase the asset, including purchase price, payment terms, conditions precedent, and completion requirements. This document serves as the foundation for subsequent negotiations and, when accepted, forms a legally binding agreement between the parties.

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What is a Commercial Offer To Purchase?

The Commercial Offer to Purchase is a crucial document in commercial transactions under English and Welsh law. It is typically used when a potential buyer wishes to formally express their interest in purchasing commercial property, business assets, or an entire business. The document includes essential details such as purchase price, payment structure, conditions precedent, due diligence requirements, and completion timeline. It serves as the initial step in formalizing the transaction and, when accepted, becomes the basis for the final purchase agreement.

What sections should be included in a Commercial Offer To Purchase?

1. Parties: Details of buyer and seller, including registered addresses and company registration numbers if applicable

2. Background: Context of the transaction and relationship between parties

3. Definitions: Key terms used throughout the document

4. Property/Asset Description: Detailed description of what is being purchased including any specific inclusions or exclusions

5. Purchase Price: Amount, currency, payment terms and method of payment

6. Conditions Precedent: Conditions that must be met before completion of the purchase

7. Completion: Details of completion process, timing and requirements

What sections are optional to include in a Commercial Offer To Purchase?

1. Due Diligence: Include when buyer requires specific due diligence rights or access to information

2. Warranties: Seller's warranties and representations about the property/asset condition and title

3. Break Clause: Rights to terminate the agreement before completion and consequences of termination

4. VAT Provisions: Specific provisions relating to VAT treatment of the transaction if applicable

5. Confidentiality: Provisions regarding confidential treatment of transaction details and information exchange

What schedules should be included in a Commercial Offer To Purchase?

1. Schedule 1 - Property Details: Detailed description and plans of property or assets being purchased

2. Schedule 2 - Due Diligence Requirements: List of required documentation, searches and investigations

3. Schedule 3 - Warranties: Detailed warranties given by seller regarding the property/asset

4. Schedule 4 - Completion Requirements: Detailed list of documents and actions required for completion

5. Appendix A - Property Plans: Plans, maps, or drawings of property where applicable

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Purchase Agreement

Cost

Free to use

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