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Reverse Purchase Agreement
"I need a Reverse Purchase Agreement for our electronics manufacturing business in Malaysia, where we will sell excess semiconductor components worth RM 5 million to a finance company and repurchase them by March 2025, with storage to remain at our facility."
1. Parties: Identification and details of the parties entering into the agreement
2. Background: Context of the agreement and relationship between the parties
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Agreement: Overview of the reverse purchase arrangement and its fundamental terms
5. Purchase Commitment: Details of the seller's commitment to repurchase the goods
6. Pricing and Payment Terms: Agreed pricing mechanism, payment schedule, and payment methods
7. Delivery and Transfer of Title: Terms regarding delivery, acceptance, and transfer of ownership
8. Quality and Specifications: Required quality standards and specifications of goods
9. Warranties and Representations: Warranties given by each party regarding their capacity and the goods
10. Term and Termination: Duration of the agreement and circumstances for termination
11. Default and Remedies: Events of default and available remedies
12. Governing Law and Jurisdiction: Specification of Malaysian law as governing law and jurisdiction
13. Miscellaneous: Standard boilerplate provisions including notices, amendments, and severability
1. Storage and Maintenance: Include when goods require specific storage conditions or maintenance during the agreement period
2. Insurance: Include when specific insurance requirements need to be detailed
3. Intellectual Property Rights: Include when the goods involve intellectual property considerations
4. Confidentiality: Include when parties need to exchange sensitive information
5. Force Majeure: Include when specific force majeure events need to be addressed
6. Assignment and Subcontracting: Include when rights to assign or subcontract need to be specifically addressed
7. Dispute Resolution: Include when specific dispute resolution mechanisms (e.g., arbitration) are required
1. Schedule 1 - Goods Description: Detailed specification of goods subject to the reverse purchase arrangement
2. Schedule 2 - Pricing Schedule: Detailed pricing structure, including any adjustments or calculations
3. Schedule 3 - Delivery Schedule: Timing and logistics of deliveries and repurchases
4. Schedule 4 - Quality Standards: Detailed quality requirements and testing procedures
5. Schedule 5 - Form of Purchase Order: Standard form for issuing purchase orders under the agreement
6. Schedule 6 - Storage Requirements: Specific storage and handling requirements if applicable
7. Appendix A - Contact Details: Key contact persons and their details for both parties
Authors
Manufacturing
Retail
Wholesale Trade
Electronics
Automotive
Consumer Goods
Commodities
Agriculture
Pharmaceutical
Industrial Equipment
Textiles
Food and Beverage
Legal
Finance
Procurement
Supply Chain
Operations
Treasury
Risk Management
Commercial
Logistics
Compliance
Supply Chain Manager
Procurement Director
Commercial Director
Chief Financial Officer
Legal Counsel
Contract Manager
Treasury Manager
Operations Manager
Inventory Manager
Risk Manager
Finance Director
Business Development Manager
Logistics Manager
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