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Guaranteed Sale Agreement for Philippines

Guaranteed Sale Agreement Template for Philippines

A comprehensive legal agreement governed by Philippine law that establishes the terms and conditions under which one party (the guarantor) commits to purchasing specified assets at a predetermined price within a set timeframe if certain conditions are met. The document includes detailed provisions on purchase obligations, pricing mechanisms, conditions precedent, representation and warranties, and remedies for default, all structured to comply with the Civil Code of the Philippines and relevant commercial legislation. It provides security for the seller while establishing clear obligations and rights for all parties involved.

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What is a Guaranteed Sale Agreement?

The Guaranteed Sale Agreement serves as a critical instrument in Philippine commercial transactions where parties seek to mitigate market risks and ensure transaction certainty. This document type is commonly used in high-value asset sales, property developments, agricultural produce contracts, and industrial equipment transactions where the seller requires assurance of a future sale. The agreement, governed by Philippine law including the Civil Code and relevant commercial regulations, typically includes comprehensive terms covering purchase obligations, pricing, conditions, warranties, and enforcement mechanisms. It's particularly valuable in situations where market volatility or industry-specific risks make traditional sale agreements insufficient to protect the parties' interests. The document structure ensures compliance with local legal requirements while providing practical commercial protection for all parties involved.

What sections should be included in a Guaranteed Sale Agreement?

1. Parties: Identifies and provides full details of the parties entering into the agreement

2. Background: Sets out the context and purpose of the agreement, including brief description of the business relationship

3. Definitions: Defines key terms used throughout the agreement for clarity and consistency

4. Sale and Purchase Obligation: Details the core obligation of the seller to sell and the guarantor to purchase if specified conditions are met

5. Purchase Price and Payment Terms: Specifies the guaranteed purchase price, payment method, and timing

6. Conditions Precedent: Lists any conditions that must be satisfied before the guarantee obligation becomes effective

7. Guarantee Terms: Specifies the terms and conditions under which the guarantee can be invoked

8. Time Period and Termination: States the duration of the guarantee and circumstances for early termination

9. Representations and Warranties: Lists the legal promises made by each party about their capacity and authority

10. Obligations of the Parties: Details specific duties and responsibilities of each party during the agreement term

11. Default and Remedies: Specifies what constitutes default and the available remedies

12. Governing Law and Jurisdiction: Specifies Philippine law as governing law and sets jurisdiction for disputes

13. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

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

1. Security: Include when additional security or collateral is required to support the guarantee

2. Insurance: Include when specific insurance requirements are needed to protect the guaranteed asset

3. Condition Assessment: Include when the guarantee is conditional on the asset meeting certain quality or condition standards

4. Third Party Rights: Include when there are other parties whose rights need to be addressed

5. Tax Provisions: Include when specific tax arrangements or implications need to be addressed

6. Confidentiality: Include when sensitive commercial information needs protection

7. Force Majeure: Include when specific events beyond parties' control need to be addressed

What schedules should be included in a Guaranteed Sale Agreement?

1. Asset Description: Detailed description of the asset(s) subject to the guaranteed sale

2. Pricing Schedule: Detailed breakdown of the purchase price and any adjustments

3. Condition Requirements: Specific conditions or quality standards that must be met

4. Required Documents: List of documents required for completing the sale

5. Form of Notice: Template for invoking the guarantee

6. Timeline: Detailed timeline of key dates and deadlines

7. Authorized Representatives: List of authorized representatives for each party

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Philippines

Publisher

Ƶ

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions








































Clauses



































Relevant Industries

Real Estate

Manufacturing

Agriculture

Automotive

Mining

Construction

Retail

Technology

Energy

Commodities Trading

Industrial Equipment

Art and Collectibles

Relevant Teams

Legal

Finance

Commercial

Risk Management

Operations

Procurement

Sales

Compliance

Treasury

Asset Management

Business Development

Relevant Roles

Commercial Director

Chief Financial Officer

Legal Counsel

Contract Manager

Risk Manager

Business Development Manager

Asset Manager

Operations Director

Procurement Manager

Sales Director

Investment Manager

Treasury Manager

Compliance Officer

Property Manager

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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