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Legal Templates
Preliminary Agreement

Preliminary Agreement for Singapore

Preliminary Agreement Template for Singapore

A Preliminary Agreement under Singapore law serves as an initial framework document that outlines the basic terms and conditions between parties before entering into a more detailed, definitive agreement. It establishes the groundwork for future negotiations while providing certain binding obligations, particularly regarding confidentiality, exclusivity, and good faith negotiations. The document complies with Singapore's Civil Law Act and common law principles, offering parties legal protection while maintaining flexibility for future negotiations.

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What is a Preliminary Agreement?

A Preliminary Agreement is commonly used in Singapore business transactions when parties need to formalize their initial understanding while maintaining flexibility for detailed negotiations. This document type is particularly valuable in complex transactions where parties need to establish basic terms, confidentiality obligations, and exclusivity arrangements before committing to a full agreement. Under Singapore law, the Preliminary Agreement can create binding obligations for specific terms while keeping other elements non-binding, allowing parties to proceed with due diligence and detailed negotiations with clear parameters and protections.

What sections should be included in a Preliminary Agreement?

1. Parties: Identification and details of all parties to the agreement

2. Background: Context and purpose of the preliminary agreement

3. Definitions: Key terms used throughout the agreement

4. Subject Matter: Core terms of what is being agreed to

5. Duration: Timeline for the preliminary agreement

6. Binding Effect: Specifies which provisions are legally binding

What sections are optional to include in a Preliminary Agreement?

1. Confidentiality: Protection of sensitive information exchanged during preliminary negotiations

2. Exclusivity: Restrictions on dealing with other parties during the preliminary agreement period

3. Costs: Allocation of expenses incurred during the preliminary phase

4. Break Fee: Compensation provisions if the anticipated transaction doesn't proceed

What schedules should be included in a Preliminary Agreement?

1. Timeline: Detailed schedule of key dates and milestones

2. Due Diligence Requirements: List of required documents and information for review

3. Term Sheet: Key commercial terms agreed in principle

4. Authorized Representatives: List of designated contact persons for each party

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 | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Document Type

Agreement Contract

Sector

Commercial

Cost

Free to use
Relevant legal definitions






















Clauses

























Industries

Civil Law Act (Cap. 43): Primary legislation governing contractual relationships in Singapore, establishing foundational principles for contract formation and enforcement

Contract Law Common Law Principles: Singapore's contract law is based on English common law principles, covering essential elements like offer, acceptance, consideration, and intention to create legal relations

Registration of Business Names Act: Regulates the registration and conduct of business entities, relevant for verifying party identities in preliminary agreements

Companies Act: Governs corporate entities in Singapore, essential for preliminary agreements involving companies, including corporate capacity and authority

Unfair Contract Terms Act (Cap. 396): Regulates the extent to which civil liability for breach of contract can be avoided through contract terms, ensuring fairness in preliminary agreements

Limitations Act (Cap. 163): Sets time limits for bringing legal actions, important for enforcement clauses in preliminary agreements

Electronic Transactions Act: Provides legal framework for electronic transactions and digital signatures, relevant if the preliminary agreement will be executed electronically

Stamp Duties Act: Governs stamp duty obligations on certain types of agreements and transactions in Singapore

Mediation Act: Framework for mediation proceedings in Singapore, relevant for dispute resolution clauses in preliminary agreements

Arbitration Act: Governs arbitration proceedings in Singapore, important if including arbitration clauses in the preliminary agreement

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,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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