Ƶ

Preliminary Agreement Template for United States

Create a bespoke document in minutes, or upload and review your own.

4.6 / 5
4.8 / 5

Let's create your document

Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.

Get your first 2 documents free

Your data doesn't train Genie's AI

You keep IP ownership of your information

Key Requirements PROMPT example:

Preliminary Agreement

"I need a preliminary agreement for a merger valued at $50 million, outlining due diligence responsibilities, confidentiality terms, and a 90-day exclusivity period with a termination clause for unmet conditions."

What is a Preliminary Agreement?

A Preliminary Agreement serves as the initial handshake between parties who plan to enter a more detailed contract later. In Philippine business practice, it outlines the key terms both sides agree to while they work out the finer details of their final agreement.

These agreements help protect both parties during negotiations by documenting their basic commitments, timelines, and confidentiality requirements. Under Philippine contract law, even these initial agreements can be legally binding if they contain all essential terms, though most parties use them as stepping stones toward a comprehensive final contract. Common in real estate deals, joint ventures, and major business transactions across Metro Manila and beyond.

When should you use a Preliminary Agreement?

Use a Preliminary Agreement when starting complex business negotiations that need structure and security before finalizing all details. This document proves especially valuable in Philippine real estate developments, corporate mergers, and major supplier contracts where parties need to lock in basic terms while working through complex specifics.

The timing is crucial - implement it early in discussions when both parties have agreed on key points but need more time for due diligence, regulatory approvals, or detailed negotiations. It helps prevent misunderstandings, protects confidential information shared during talks, and creates clear timelines for completing the final deal. Many Filipino businesses use these agreements during joint venture formations and property acquisitions.

What are the different types of Preliminary Agreement?

Who should typically use a Preliminary Agreement?

  • Business Executives: CEOs, CFOs, and other corporate officers who initiate and approve the preliminary terms during major business transactions
  • Real Estate Developers: Use these agreements to secure initial commitments for land acquisition and development projects across the Philippines
  • Corporate Lawyers: Draft and review the agreements to ensure compliance with Philippine law and protect their clients' interests
  • Investment Bankers: Facilitate deals using Preliminary Agreements during mergers, acquisitions, and major financing transactions
  • Business Owners: Small to medium enterprise owners who need to document initial terms before finalizing major business deals

How do you write a Preliminary Agreement?

  • Basic Details: Gather complete legal names, addresses, and contact information of all parties involved in the transaction
  • Deal Terms: List key business points, including price, payment terms, and timelines agreed upon during initial discussions
  • Subject Matter: Document clear descriptions of assets, shares, or properties involved in the transaction
  • Due Diligence: Outline what documents and information each party must provide during the negotiation period
  • Timeline Planning: Set realistic deadlines for completing due diligence, obtaining approvals, and signing the final agreement
  • Confidentiality Needs: Identify sensitive information that requires protection during negotiations

What should be included in a Preliminary Agreement?

  • Party Details: Full legal names, addresses, and authorized representatives of all involved parties
  • Subject Matter: Clear description of the transaction scope, assets, or business arrangement being discussed
  • Key Terms: Essential business points, pricing, payment terms, and timeline commitments
  • Confidentiality Clause: Terms protecting sensitive information shared during negotiations
  • Duration: Clear validity period and deadlines for finalizing the definitive agreement
  • Binding Elements: Specific mention of which provisions are legally binding under Philippine law
  • Signature Block: Proper execution sections with witness requirements per Philippine regulations

What's the difference between a Preliminary Agreement and a Business Acquisition Agreement?

A Preliminary Agreement differs significantly from a Business Acquisition Agreement in several key aspects, though both play important roles in Philippine business transactions. While a Preliminary Agreement sets initial terms and creates a framework for future negotiations, a Business Acquisition Agreement represents the final, comprehensive deal.

  • Timing and Purpose: Preliminary Agreements come first, outlining basic terms and commitments while negotiations continue. Business Acquisition Agreements represent the final, detailed transaction terms
  • Level of Detail: Preliminary Agreements contain basic terms and general commitments, while Business Acquisition Agreements include complete operational details, warranties, and specific obligations
  • Legal Binding Effect: Preliminary Agreements may have limited binding elements, mainly confidentiality and exclusivity. Business Acquisition Agreements are fully binding and enforceable
  • Due Diligence Stage: Preliminary Agreements often precede due diligence, while Business Acquisition Agreements are signed after completing all investigations and verifications

Get our -compliant Preliminary Agreement:

Access for Free Now
*No sign-up required
4.6 / 5
4.8 / 5

Find the exact document you need

Preliminary Services Agreement

A Philippine law-governed agreement establishing preliminary service arrangements and obligations before a full service agreement is executed.

find out more

Preliminary Lease Agreement

A preliminary binding agreement under Philippine law that establishes initial terms and conditions between lessor and lessee before entering into a formal lease arrangement.

find out more

Preliminary Sale Contract

A Philippine law-governed agreement establishing preliminary terms and conditions for a proposed sale transaction, serving as a formal commitment before the final sale contract.

find out more

Preliminary Agreement For Sale And Purchase

A preliminary binding agreement under Philippine law that establishes the basic terms and conditions for a property sale transaction, serving as a precursor to the final Deed of Absolute Sale.

find out more

Preliminary Sale Agreement

A Philippine law-governed agreement establishing preliminary terms and conditions for a future sale transaction, including key commercial terms and due diligence requirements.

find out more

Preliminary Share Purchase Agreement

A preliminary agreement under Philippine law outlining the proposed terms and conditions for the purchase of shares in a target company.

find out more

Preliminary Purchase Agreement

A Philippine law-governed agreement establishing preliminary terms and conditions for a proposed purchase transaction, pending due diligence and final documentation.

find out more

Download our whitepaper on the future of AI in Legal

By providing your email address you are consenting to our Privacy Notice.
Thank you for downloading our whitepaper. This should arrive in your inbox shortly. In the meantime, why not jump straight to a section that interests you here: /our-research
Oops! Something went wrong while submitting the form.

ұԾ’s Security Promise

Genie is the safest place to draft. Here’s how we prioritise your privacy and security.

Your documents are private:

We do not train on your data; ұԾ’s AI improves independently

All data stored on Genie is private to your organisation

Your documents are protected:

Your documents are protected by ultra-secure 256-bit encryption

Our bank-grade security infrastructure undergoes regular external audits

We are ISO27001 certified, so your data is secure

Organizational security

You retain IP ownership of your documents

You have full control over your data and who gets to see it

Innovation in privacy:

Genie partnered with the Computational Privacy Department at Imperial College London

Together, we ran a £1 million research project on privacy and anonymity in legal contracts