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Intent To Purchase Agreement Template for Ireland

An Intent to Purchase Agreement under Irish law is a preliminary contractual document that outlines the proposed terms and conditions for a future purchase transaction. It establishes the framework for negotiations while providing certain binding obligations such as confidentiality and exclusivity. The agreement, governed by Irish law, typically includes provisions for due diligence, timeline commitments, and key commercial terms, while maintaining flexibility for the final purchase agreement. It serves as a crucial stepping stone in commercial transactions by documenting serious intent while allowing parties to complete necessary investigations and negotiations.

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What is a Intent To Purchase Agreement?

The Intent to Purchase Agreement is a critical document used in commercial transactions where parties wish to formally express their serious intention to proceed with a purchase while maintaining flexibility for final terms. This document, governed by Irish law, serves as a bridge between initial negotiations and the final purchase agreement, typically used in scenarios involving significant assets, business acquisitions, or real estate transactions. It includes essential provisions such as exclusivity periods, confidentiality obligations, due diligence rights, and proposed commercial terms, while clearly delineating which provisions are binding and which are subject to final agreement. The document provides protection for both parties during the negotiation phase while allowing necessary investigations and discussions to proceed in a structured manner.

What sections should be included in a Intent To Purchase Agreement?

1. Parties: Identifies and provides full legal details of all parties to the agreement

2. Background: Sets out the context and circumstances leading to the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Subject Matter: Describes the asset or business being considered for purchase

5. Purchase Price: States the proposed purchase price or method of calculation

6. Due Diligence: Outlines the buyer's right to conduct due diligence and the seller's obligations to provide information

7. Timeline: Sets out key dates including due diligence period, final agreement deadline, and proposed completion date

8. Exclusivity: Prevents the seller from negotiating with other potential buyers during the specified period

9. Confidentiality: Requires parties to maintain confidentiality of discussions and shared information

10. Costs: Specifies how costs related to the transaction will be allocated between parties

11. Binding Effect: Clarifies which provisions are legally binding and which are subject to final agreement

12. Governing Law: Specifies that Irish law governs the agreement

13. Execution: Signature blocks and execution formalities

What sections are optional to include in a Intent To Purchase Agreement?

1. Break Fee: Applies when parties agree to a fee payable if either party withdraws from negotiations

2. Deposit: Used when a deposit is required to demonstrate commitment

3. Regulatory Approvals: Required for regulated industries or transactions requiring governmental approval

4. Employee Matters: Relevant for business purchases involving transfer of employees

5. Intellectual Property: Important when the purchase involves significant IP assets

6. Property Matters: Required for real estate transactions or business purchases involving property

7. Environmental Matters: Necessary for transactions involving industrial properties or environmental risks

8. Third Party Consents: Used when the transaction requires approval from other parties

What schedules should be included in a Intent To Purchase Agreement?

1. Schedule 1 - Asset Description: Detailed description of the asset or business being considered for purchase

2. Schedule 2 - Due Diligence Requirements: List of documents and information required for due diligence

3. Schedule 3 - Timeline: Detailed timeline with all key dates and milestones

4. Schedule 4 - Pre-Conditions: List of conditions that must be satisfied before proceeding to final purchase

5. Appendix A - Form of Confidentiality Agreement: Standard form of confidentiality agreement if not already executed

6. Appendix B - Proposed Terms Sheet: Key commercial terms for the final purchase agreement

Authors

Alex Denne

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

Jurisdiction

Ireland

Publisher

ֱ

Document Type

Letter of Intent

Cost

Free to use

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