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Call Option Contract Template for Australia

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Key Requirements PROMPT example:

Call Option Contract

"I need a Call Option Contract for a commercial property purchase in Melbourne, with the option exercisable until March 15, 2025, including specific provisions for due diligence and environmental assessments before exercise."

Document background
A Call Option Contract is a strategic legal instrument used in various commercial contexts in Australia, providing the option holder with the right (but not the obligation) to purchase specific assets at predetermined terms. This document is particularly valuable in scenarios involving property transactions, corporate acquisitions, or securities trading, where parties need to secure future purchase rights while maintaining flexibility. The agreement must comply with Australian federal and state legislation, including the Corporations Act 2001 and relevant state property laws. It typically includes detailed provisions on option exercise mechanics, consideration, completion procedures, and regulatory compliance requirements. This type of contract is commonly used in commercial real estate transactions, corporate deals, and strategic business arrangements where parties seek to lock in future purchase opportunities while managing risk and maintaining strategic advantages.
Suggested Sections

1. Parties: Identification of the Option Grantor and Option Holder, including full legal names and addresses

2. Background: Context of the agreement and brief description of the subject matter of the option

3. Definitions: Key terms used throughout the agreement, including Option Period, Strike Price, Option Fee, and Subject Matter

4. Grant of Option: Express grant of the option and its fundamental terms

5. Option Fee and Payment: Details of the consideration paid for the option and payment terms

6. Exercise of Option: Process and requirements for exercising the option, including notice requirements

7. Option Period: Duration of the option, including commencement and expiry dates

8. Completion: Process and obligations upon exercise of the option

9. Warranties and Representations: Standard warranties about capacity, authority, and title

10. Default and Termination: Consequences of breach and circumstances allowing termination

11. Notices: Format and process for giving formal notices under the agreement

12. General Provisions: Standard boilerplate clauses including governing law, entire agreement, and amendment procedures

Optional Sections

1. Security: Required when the option is secured against other assets or requires specific security arrangements

2. Multiple Options: Used when granting multiple options or tranches of options

3. Third Party Consents: Required when exercise of the option requires consent from other parties

4. Pre-emptive Rights: Included when there are existing rights holders who need to waive their rights

5. Adjustments: Required for options over shares where adjustments may be needed for corporate actions

6. Assignment: Detailed assignment provisions if the option is transferable

7. Broker/Agent Provisions: Required when a broker or agent is involved in the option arrangement

8. Foreign Investment Provisions: Required when the option involves foreign investors or FIRB approval

Suggested Schedules

1. Option Terms Schedule: Detailed specifications of the option including strike price, expiry date, and subject matter

2. Subject Matter Details: Detailed description of the underlying asset (e.g., property details, share specifications)

3. Exercise Notice Form: Pro forma notice for exercising the option

4. Calculation Methods: Detailed methodology for calculating adjustments or prices if applicable

5. Required Consents: List of required third-party consents and their status

6. Completion Checklist: List of requirements and documents needed at completion

7. Existing Encumbrances: Details of any existing encumbrances on the subject matter of the option

Authors

Alex Denne

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

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Relevant Industries

Financial Services

Real Estate

Mining

Agriculture

Technology

Retail

Manufacturing

Private Equity

Venture Capital

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Energy

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Relevant Teams

Legal

Finance

Corporate Development

Mergers & Acquisitions

Risk Management

Compliance

Treasury

Commercial Operations

Business Development

Property

Investment

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Commercial Director

Legal Counsel

Corporate Lawyer

Investment Manager

Business Development Manager

Property Manager

Acquisitions Manager

Risk Manager

Compliance Officer

Contract Manager

Company Director

Financial Controller

Treasury 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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