Put And Call Option Deed Template for England and Wales

A Put and Call Option Deed under English and Welsh law is a formal legal document that establishes reciprocal rights between parties to buy and sell specific assets, shares, or property. The deed grants one party the right to sell (put option) and the other party the right to buy (call option) at predetermined terms. It is governed by English and Welsh law and must comply with the formal requirements of the Law of Property Act 1925 and related legislation.

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What is a Put And Call Option Deed?

A Put And Call Option Deed is commonly used in commercial transactions where parties wish to establish future rights to buy and sell assets. The deed, governed by English and Welsh law, provides flexibility in business arrangements by allowing parties to exercise options within specified timeframes and under predetermined conditions. It typically includes detailed provisions on pricing mechanisms, exercise procedures, and completion requirements, making it particularly valuable in complex commercial transactions, property developments, and corporate restructuring scenarios.

What sections should be included in a Put And Call Option Deed?

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

2. Background/Recitals: Context and purpose of the option arrangement

3. Definitions and Interpretation: Key terms and interpretation rules

4. Grant of Put Option: Terms of the put option, including price and exercise mechanism

5. Grant of Call Option: Terms of the call option, including price and exercise mechanism

6. Exercise Period: Timeframe during which options can be exercised

7. Completion: Process following option exercise

8. Warranties: Standard warranties regarding capacity and authority

What sections are optional to include in a Put And Call Option Deed?

1. Security Provisions: Additional provisions for when security is required for option obligations. Used when there are concerns about counterparty performance

2. Tax Provisions: Specific tax treatment agreements and allocations. Used when complex tax implications need addressing

3. Regulatory Compliance: Specific regulatory obligations and compliance requirements. Used when options relate to regulated assets or securities

What schedules should be included in a Put And Call Option Deed?

1. Form of Option Notice: Template notice for exercising options

2. Asset Description: Detailed description of the asset subject to options

3. Price Calculation Mechanism: Formula or mechanism for determination of price if not fixed

4. Completion Requirements: Detailed completion obligations and documentation

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

Cost

Free to use

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