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Financing Condition Purchase Agreement for the United Kingdom

Financing Condition Purchase Agreement Template for England and Wales

A Financing Condition Purchase Agreement under English and Welsh law is a legal document that establishes the terms and conditions for a purchase transaction where completion is contingent upon securing specific financing arrangements. The agreement outlines the purchase price, payment terms, financing conditions, and the rights and obligations of all parties involved. It includes provisions for what happens if financing cannot be obtained and typically incorporates security arrangements and conditions precedent that must be satisfied before completion.

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What is a Financing Condition Purchase Agreement?

The Financing Condition Purchase Agreement is commonly used in transactions where the buyer's ability to complete the purchase is dependent on obtaining specific financing. This agreement, governed by English and Welsh law, provides protection for both buyers and sellers by clearly setting out the conditions that must be met for the transaction to proceed, including detailed financing requirements, timeframes, and consequences of non-fulfillment. It is particularly useful in commercial transactions where significant capital expenditure is involved and external financing is required to complete the purchase.

What sections should be included in a Financing Condition Purchase Agreement?

1. Parties: Identification and details of all contracting parties

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Purchase Price and Payment Terms: Details of consideration and payment structure

5. Financing Conditions: Specific conditions relating to financing arrangements

6. Security Arrangements: Details of any security or collateral requirements

7. Representations and Warranties: Standard confirmations from both parties

8. Termination Rights: Circumstances and process for ending the agreement

9. Governing Law and Jurisdiction: Confirmation of applicable law and courts

What sections are optional to include in a Financing Condition Purchase Agreement?

1. Consumer Protection Provisions: Required when dealing with consumer transactions - includes mandatory consumer rights and protections under Consumer Rights Act 2015

2. Data Protection: GDPR compliance provisions for handling personal data under Data Protection Act 2018 and UK GDPR

3. Insurance Requirements: Specific insurance obligations and requirements for asset protection

What schedules should be included in a Financing Condition Purchase Agreement?

1. Asset Schedule: Details of assets being purchased including specifications and conditions

2. Payment Schedule: Detailed breakdown of payment terms, dates, and installment amounts

3. Form of Security Documents: Templates for any required security documentation including charges and guarantees

4. Conditions Precedent: List of requirements to be satisfied before completion of the agreement

5. Notice Requirements: Forms and procedures for formal notices between parties

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

England and Wales

Publisher

Ƶ

Document Type

Financing Agreement

Cost

Free to use
Relevant legal definitions



































Clauses


































Industries

Consumer Credit Act 1974: Primary legislation governing consumer credit agreements and financial transactions involving consumers in England and Wales

Financial Services and Markets Act 2000: Key legislation regulating financial services and markets in the UK, including oversight of financial institutions and regulated activities

Sale of Goods Act 1979: Fundamental legislation governing the sale of goods and commercial transactions in England and Wales

Consumer Rights Act 2015: Modern legislation protecting consumer rights in goods, services, and digital content transactions

Contracts (Rights of Third Parties) Act 1999: Legislation governing how third parties may enforce terms of a contract

FCA Regulations: Regulatory framework established by the Financial Conduct Authority for financial services and markets

Consumer Credit sourcebook (CONC): Detailed regulations and guidance for consumer credit activities issued by the FCA

Regulated Activities Order 2001: Statutory instrument specifying which activities require FCA authorization under FSMA

Money Laundering Regulations 2017: Regulations requiring businesses to prevent money laundering and terrorist financing

Data Protection Act 2018: UK's implementation of data protection standards, working alongside UK GDPR

Unfair Contract Terms Act 1977: Legislation regulating unfair terms in contracts, particularly in standard form contracts

Financial Services (Distance Marketing) Regulations 2004: Regulations governing the remote marketing and selling of financial services

Consumer Protection from Unfair Trading Regulations 2008: Regulations protecting consumers from unfair commercial practices and misleading marketing

Companies Act 2006: Primary legislation governing company registration and operations, including security registration requirements

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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