Forward Sale Agreement for Singapore

Forward Sale Agreement Template for Singapore

A Forward Sale Agreement under Singapore law is a legally binding contract where parties agree to execute a sale transaction at a future date, with specified terms including price, quantity, and delivery conditions. This agreement is governed by Singapore's Contract Law and Sale of Goods Act, providing a robust framework for commercial transactions. It includes detailed provisions for payment terms, delivery schedules, quality specifications, and risk allocation, while incorporating Singapore's regulatory requirements for forward contracts.

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What is a Forward Sale Agreement?

Forward Sale Agreements are essential commercial instruments used when parties wish to lock in future transactions at predetermined terms. Under Singapore law, these agreements provide certainty in pricing and supply while managing market volatility risks. The Forward Sale Agreement structure includes comprehensive terms covering payment, delivery, quality specifications, and risk allocation, making it particularly valuable in commodities trading, manufacturing, and financial services. Singapore's sophisticated legal framework, combining common law principles with modern commercial legislation, provides robust protection for parties entering into such forward contracts.

What sections should be included in a Forward Sale Agreement?

1. Parties: Identification and details of contracting parties

2. Background: Context and purpose of the forward sale agreement

3. Definitions: Key terms used throughout the agreement

4. Subject Matter: Description of goods/assets being sold forward

5. Price and Payment Terms: Purchase price, payment schedule, and method

6. Delivery Terms: Timing, location, and method of delivery

7. Representations and Warranties: Statements of fact and assurances by parties

8. Term and Termination: Duration and termination provisions

9. Governing Law and Jurisdiction: Specification of Singapore law and jurisdiction

10. Notices: Communication procedures between parties

What sections are optional to include in a Forward Sale Agreement?

1. Force Majeure: Events beyond parties' control affecting performance - used for long-term or international contracts

2. Hedging Provisions: Risk management mechanisms - used when price volatility is a concern

3. Quality Specifications: Detailed product requirements - used when dealing with commodities or specialized goods

4. Compliance with Laws: Specific regulatory compliance requirements - used when dealing with regulated products or industries

5. Insurance: Insurance requirements and obligations - used for high-value transactions or specific risk scenarios

What schedules should be included in a Forward Sale Agreement?

1. Schedule 1 - Product Specifications: Detailed description of goods/assets including technical specifications

2. Schedule 2 - Pricing Formula: Detailed calculation method for forward price including any adjustments

3. Schedule 3 - Delivery Schedule: Detailed timeline and logistics for delivery including any specific requirements

4. Schedule 4 - Quality Standards: Technical specifications, quality standards, and testing procedures

5. Schedule 5 - Form of Notice: Template forms for various notices required under the agreement

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

Sales Agreement

Sector

Sales

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Contract Law (Chapter 53B): Primary legislation governing formation and enforcement of contracts in Singapore, including requirements for valid contracts and remedies for breach

Sale of Goods Act (Chapter 393): Regulates sale of goods transactions, including rights and obligations of buyers and sellers, and transfer of title and risk

Securities and Futures Act (Chapter 289): Regulates financial instruments and commodities trading, including derivatives and licensing requirements for regulated activities

Electronic Transactions Act (Chapter 88): Governs electronic contracts and signatures, providing legal recognition of electronic records and transactions

Unfair Contract Terms Act (Chapter 396): Provides restrictions on exclusion clauses and protection against unreasonable contract terms

UNIDROIT Principles: International principles for commercial contracts, relevant for international forward sale agreements

INCOTERMS: International commercial terms defining responsibilities of buyers and sellers in international trade

Singapore Convention on Mediation: International framework for enforcement of mediated settlement agreements in cross-border disputes

Singapore Common Law: Case law precedents and equity principles that supplement statutory law in Singapore

MAS Guidelines: Regulatory guidelines from Monetary Authority of Singapore applicable to forward sale agreements involving regulated financial products

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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