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Sale With Buyback Agreement for Philippines

Sale With Buyback Agreement Template for Philippines

A Sale With Buyback Agreement under Philippine law is a specialized contract that combines elements of a sale with a right of repurchase. The agreement is governed by the Civil Code of the Philippines, particularly Articles 1601-1607 on conventional redemption, and must comply with local regulatory requirements. It enables the original owner (seller) to sell an asset while retaining the right to buy it back within a specified period at a predetermined price. The document details the initial sale terms, buyback conditions, timeframes, price calculations, and parties' obligations during the buyback period, while ensuring compliance with Philippine legal requirements for such transactions.

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What is a Sale With Buyback Agreement?

The Sale With Buyback Agreement is commonly used in the Philippines when a party needs immediate liquidity while wanting to retain the possibility of recovering the asset in the future. This document type is particularly useful in real estate transactions, business asset sales, and financial arrangements where temporary transfer of ownership is desired. The agreement must comply with Philippine Civil Code provisions on conventional redemption (pacto de retro) and includes specific terms about the initial sale, buyback rights, exercise periods, and price calculations. It's essential for transactions where the seller wants a safety net to reclaim the asset, while the buyer seeks a secure temporary investment. The document requires careful structuring to ensure enforceability under Philippine law and typically includes provisions for registration, taxation, and regulatory compliance where applicable.

What sections should be included in a Sale With Buyback Agreement?

1. Parties: Identification of the Seller (who will have buyback rights) and Buyer (who will be obligated to sell back)

2. Background: Context of the transaction and relationship between the parties

3. Definitions: Key terms used throughout the agreement, including Asset, Buyback Period, Buyback Price, and Exercise Notice

4. Sale of Asset: Details of the initial sale transaction, including the asset description and initial purchase price

5. Buyback Rights: Terms and conditions of the buyback right, including the period within which it can be exercised

6. Exercise of Buyback Right: Process and procedures for exercising the buyback right, including notice requirements

7. Buyback Price and Payment: Specification of the buyback price and payment terms

8. Title and Risk: Provisions regarding transfer of title and risk in both initial sale and buyback

9. Representations and Warranties: Standard representations and warranties from both parties

10. Rights and Obligations During Buyback Period: Parties' respective rights and obligations while the buyback right exists

11. Term and Termination: Duration of the agreement and circumstances for termination

12. Governing Law and Jurisdiction: Specification of Philippine law as governing law and jurisdiction for disputes

What sections are optional to include in a Sale With Buyback Agreement?

1. Security Provisions: Required if the asset needs to be preserved in a specific condition during the buyback period

2. Registration: Required for real property or vehicles subject to registration requirements

3. Tax Provisions: Detailed tax arrangements if significant tax implications exist

4. Insurance: Required if the asset needs to be insured during the buyback period

5. Third Party Rights: Required if there are potential third party interests in the asset

6. Force Majeure: Optional protection against unforeseen circumstances affecting performance

7. Assignment: Required if either party may need to transfer their rights or obligations

8. Confidentiality: Required for transactions involving sensitive commercial information

What schedules should be included in a Sale With Buyback Agreement?

1. Schedule 1 - Asset Description: Detailed description and specification of the asset(s) being sold

2. Schedule 2 - Initial Purchase Price Calculation: Breakdown of the initial purchase price and payment terms

3. Schedule 3 - Buyback Price Calculation: Formula or fixed amount for the buyback price, including any adjustments

4. Schedule 4 - Form of Exercise Notice: Template notice for exercising the buyback right

5. Schedule 5 - Condition Report: Description of the asset's condition at the time of initial sale

6. Schedule 6 - Required Maintenance: Maintenance requirements during the buyback period, if applicable

Authors

Alex Denne

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

Jurisdiction

Philippines

Publisher

抖阴视频

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions









































Clauses






























Relevant Industries

Real Estate

Manufacturing

Financial Services

Agriculture

Retail

Automotive

Mining

Construction

Technology

Energy

Relevant Teams

Legal

Finance

Real Estate

Asset Management

Treasury

Risk Management

Compliance

Operations

Business Development

Investment

Relevant Roles

Legal Counsel

Corporate Lawyer

Business Development Manager

Finance Director

Real Estate Manager

Asset Manager

Chief Financial Officer

Property Manager

Investment Manager

Risk Manager

Compliance Officer

Contract Administrator

Treasury Manager

Operations Director

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, 聽Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination, 聽Severance Pay, Governing Law, Entire Agreemen

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