A Contract to Sell is a crucial preliminary agreement in Indian business transactions, particularly used when immediate transfer of property or assets is not feasible or desired. This document serves as a binding commitment between parties for a future sale, typically used in real estate transactions, large asset purchases, or complex business deals where certain conditions must be met before the final sale. The agreement must comply with Indian contract law principles, including the Indian Contract Act 1872, Sale of Goods Act 1930, and where applicable, the Transfer of Property Act 1882. It differs from an immediate sale deed by creating future obligations while allowing parties to fulfill various conditions, arrange financing, or complete due diligence before the final transfer.
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1. Parties: Identification and details of the seller and buyer, including names, addresses, and legal status
2. Background: Context of the transaction and brief description of the property being sold
3. Definitions: Definitions of key terms used throughout the agreement
4. Subject Matter: Detailed description of the property/goods to be sold and confirmation of seller's ownership
5. Purchase Price: Agreed purchase price, payment terms, and schedule of payments
6. Earnest Money: Details of the initial deposit/earnest money to be paid
7. Conditions Precedent: Conditions that must be fulfilled before the sale can be completed
8. Seller's Representations and Warranties: Seller's declarations regarding the property's title, encumbrances, and condition
9. Buyer's Representations and Warranties: Buyer's declarations regarding capacity to purchase and financial ability
10. Completion: Process and timeline for completing the sale
11. Default and Remedies: Consequences of default by either party and available remedies
12. Notices: Method and addresses for serving notices between parties
13. Governing Law and Jurisdiction: Specification of Indian law as governing law and jurisdiction for disputes
14. Execution: Signature blocks and execution formalities
1. Due Diligence: Procedures for buyer's investigation of property/goods - include when dealing with complex assets
2. Conditions Subsequent: Conditions to be fulfilled after the agreement - include for phased transactions
3. Force Majeure: Provisions for unforeseen circumstances - important for long-term contracts to sell
4. Assignment: Rights to assign the agreement - include when transfer rights are important
5. Confidentiality: Confidentiality obligations - include for high-value or sensitive transactions
6. Broker/Agent: Details of any intermediaries - include when brokers are involved
7. Tax Provisions: Specific tax-related terms - include for high-value transactions with significant tax implications
8. Registration: Registration requirements and procedures - mandatory for immovable property
1. Property Description: Detailed description of the property/goods including specifications, boundaries, or technical details
2. Payment Schedule: Detailed breakdown of payment terms, installments, and due dates
3. Title Documents: List of title documents and ownership proof
4. Encumbrances: List of existing encumbrances, if any
5. Due Diligence Requirements: Checklist of documents and verifications required
6. Form of Notice: Template for notices under the agreement
7. Outstanding Approvals: List of pending or required governmental or regulatory approvals
Relevant legal definitions
Agreement
Applicable Law
Asset
Business Day
Completion
Completion Date
Conditions Precedent
Consideration
Contract Price
Deposit
Earnest Money
Effective Date
Encumbrances
Force Majeure Event
Governmental Authority
Intellectual Property Rights
Letter of Intent
Material Adverse Effect
Parties
Payment Schedule
Property
Purchase Price
Registration
Representations and Warranties
Sale Deed
Seller's Title
Stamp Duty
Subject Matter
Tax
Title Documents
Transfer
Valuation
Working Day
Applicable Law
Asset
Business Day
Completion
Completion Date
Conditions Precedent
Consideration
Contract Price
Deposit
Earnest Money
Effective Date
Encumbrances
Force Majeure Event
Governmental Authority
Intellectual Property Rights
Letter of Intent
Material Adverse Effect
Parties
Payment Schedule
Property
Purchase Price
Registration
Representations and Warranties
Sale Deed
Seller's Title
Stamp Duty
Subject Matter
Tax
Title Documents
Transfer
Valuation
Working Day
Clauses
Parties and Property
Recitals
Definitions
Sale and Purchase
Purchase Price
Payment Terms
Earnest Money
Title and Ownership
Representations and Warranties
Conditions Precedent
Due Diligence
Completion
Default and Remedies
Force Majeure
Indemnification
Registration and Stamp Duty
Tax Obligations
Notices
Assignment
Confidentiality
Dispute Resolution
Governing Law
Severability
Entire Agreement
Amendment
Waiver
Costs and Expenses
Further Assurances
Counterparts
Time of Essence
Recitals
Definitions
Sale and Purchase
Purchase Price
Payment Terms
Earnest Money
Title and Ownership
Representations and Warranties
Conditions Precedent
Due Diligence
Completion
Default and Remedies
Force Majeure
Indemnification
Registration and Stamp Duty
Tax Obligations
Notices
Assignment
Confidentiality
Dispute Resolution
Governing Law
Severability
Entire Agreement
Amendment
Waiver
Costs and Expenses
Further Assurances
Counterparts
Time of Essence
Relevant Industries
Real Estate
Manufacturing
Agriculture
Retail
Industrial
Technology
Automotive
Construction
Mining
Infrastructure
Hospitality
Relevant Teams
Legal
Finance
Operations
Commercial
Compliance
Real Estate
Property Management
Sales
Procurement
Business Development
Risk Management
Relevant Roles
Legal Counsel
Property Manager
Real Estate Manager
Business Development Manager
Contract Manager
Compliance Officer
Chief Financial Officer
Commercial Director
Operations Manager
Asset Manager
Property Developer
Procurement Manager
Sales Director
Transaction Manager
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