Provisional Sales And Purchase Agreement for the Netherlands

Provisional Sales And Purchase Agreement Template for Netherlands

A Provisional Sales and Purchase Agreement under Dutch law serves as a preliminary binding agreement between parties intending to enter into a final sale transaction. This document outlines the key terms and conditions of the proposed sale, including purchase price, payment terms, due diligence requirements, and conditions precedent. Governed by the Dutch Civil Code (Burgerlijk Wetboek), it establishes exclusivity periods, confidentiality obligations, and the framework for proceeding to a definitive agreement. The document provides crucial protection for both parties during the negotiation phase while maintaining flexibility for detailed terms to be finalized in the definitive agreement.

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What is a Provisional Sales And Purchase Agreement?

The Provisional Sales and Purchase Agreement is a critical document used in the preliminary stages of commercial transactions under Dutch law. It serves as a bridge between initial negotiations and the final sale agreement, providing a structured framework while parties conduct due diligence and negotiate detailed terms. This document type is particularly valuable in complex transactions where parties need to establish binding commitments on key terms while maintaining flexibility for detailed negotiations. The agreement typically includes essential elements such as purchase price mechanisms, exclusivity periods, and conditions precedent, while being governed by Dutch law and particularly the provisions of the Burgerlijk Wetboek. It offers protection to both parties during the negotiation phase and sets clear expectations for the path to a definitive agreement.

What sections should be included in a Provisional Sales And Purchase Agreement?

1. Parties: Identification and details of the seller and purchaser

2. Background: Context of the transaction and purpose of the provisional agreement

3. Definitions: Definitions of key terms used throughout the agreement

4. Subject Matter of Sale: Clear identification and description of the assets or goods being sold

5. Purchase Price: Agreed purchase price, payment terms, and any adjustments

6. Deposit: Amount, payment terms, and conditions for return or forfeiture of the deposit

7. Conditions Precedent: Conditions that must be fulfilled before proceeding to definitive agreement

8. Due Diligence: Scope, process, and timeline for due diligence investigation

9. Exclusivity Period: Duration and terms of exclusive negotiations

10. Path to Definitive Agreement: Process and timeline for reaching the final agreement

11. Costs: Allocation of costs and expenses

12. Confidentiality: Obligations regarding confidential information

13. Governing Law and Jurisdiction: Specification of Dutch law and competent courts

14. Termination: Circumstances and process for terminating the provisional agreement

What sections are optional to include in a Provisional Sales And Purchase Agreement?

1. Break Fee: Include when parties agree on compensation if either party withdraws from negotiations

2. Regulatory Approvals: Include when the transaction requires specific regulatory clearances

3. Financing Condition: Include when purchase is subject to buyer obtaining financing

4. Employee Matters: Include when the sale involves transfer of employees

5. Intellectual Property: Include when IP assets are part of the transaction

6. Tax Matters: Include when specific tax arrangements or implications need to be addressed

7. Environmental Matters: Include when environmental due diligence or liabilities are relevant

8. Real Estate Provisions: Include when real property is involved in the transaction

What schedules should be included in a Provisional Sales And Purchase Agreement?

1. Asset Schedule: Detailed list and description of assets included in the sale

2. Due Diligence Checklist: List of documents and information to be reviewed

3. Timeline: Detailed timeline for completion of due diligence and definitive agreement

4. Form of Definitive Agreement: Draft or outline of the final agreement structure

5. Disclosure Schedule: Known issues or exceptions to representations

6. Required Consents: List of third-party or regulatory approvals needed

7. Price Calculation: Detailed methodology for price adjustments if 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 | Serial Founder & Legal AI Author

Jurisdiction

Netherlands

Publisher

Genie AI

Document Type

Contract to Sell

Cost

Free to use
Relevant legal definitions
Clauses
Relevant Industries

Real Estate

Manufacturing

Technology

Retail

Professional Services

Healthcare

Energy

Financial Services

Agriculture

Construction

Hospitality

Transportation

Media and Entertainment

Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Business Development

Executive Leadership

Risk & Compliance

Operations

Strategy

Commercial

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Lawyer

M&A Director

Business Development Manager

Commercial Director

Finance Manager

Operations Director

Risk Manager

Compliance Officer

Investment Manager

Transaction Manager

Corporate Secretary

Industries
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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