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Short Form Asset Purchase Agreement for Philippines

Short Form Asset Purchase Agreement Template for Philippines

This document is a simplified asset purchase agreement tailored for use in the Philippines, designed to facilitate the transfer of assets between parties while complying with Philippine law. It incorporates essential provisions required under the Civil Code of the Philippines and relevant commercial legislation, while maintaining a concise format suitable for straightforward asset transfers. The agreement covers key aspects such as asset identification, purchase price, warranties, and completion requirements, while being structured to accommodate various types of assets from equipment to intellectual property.

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What is a Short Form Asset Purchase Agreement?

The Short Form Asset Purchase Agreement is specifically designed for use in the Philippine jurisdiction where parties seek to execute a streamlined asset purchase transaction. This document is particularly suitable for straightforward asset transfers where the complexity and value of the transaction don't warrant a more comprehensive agreement. It incorporates essential elements required under Philippine law, including provisions mandated by the Civil Code of the Philippines and the Corporation Code, while maintaining brevity and clarity. The agreement is commonly used for transactions involving tangible assets, equipment, inventory, or simple business assets, though it can be adapted for various asset types. It's structured to provide adequate protection for both parties while avoiding the extensive provisions and negotiations typically associated with more complex asset purchase agreements.

What sections should be included in a Short Form Asset Purchase Agreement?

1. Parties: Identifies and provides full legal details of the seller and purchaser

2. Background: Brief context of the transaction and ownership status of the assets

3. Definitions: Key terms used throughout the agreement

4. Sale and Purchase: Core agreement to sell and purchase the assets, including the basic terms

5. Purchase Price: Specified purchase price, payment terms, and method of payment

6. Completion: Details of when and where completion will take place and what will happen at completion

7. Seller's Warranties: Basic warranties regarding ownership, authority to sell, and condition of assets

8. Purchaser's Warranties: Basic warranties regarding authority to purchase and ability to pay

9. Confidentiality: Obligations to keep transaction details confidential

10. Governing Law and Jurisdiction: Specifies Philippine law as governing law and jurisdiction for disputes

11. Entire Agreement: Confirms the agreement represents the entire understanding between parties

12. Execution: Signature blocks and execution formalities

What sections are optional to include in a Short Form Asset Purchase Agreement?

1. Tax Provisions: Include when specific tax arrangements or allocations need to be agreed upon

2. Employee Matters: Include when the assets include employment contracts or when employees are being transferred

3. Intellectual Property: Include when IP assets are part of the purchase

4. Real Property: Include when real estate assets are involved

5. Post-Completion Obligations: Include when there are specific actions required after completion

6. Non-Competition: Include when seller needs to be restricted from competing

7. Third Party Consents: Include when transfer of certain assets requires third party approval

8. Environmental Matters: Include when assets include land or operations with environmental implications

What schedules should be included in a Short Form Asset Purchase Agreement?

1. Schedule 1 - Asset List: Detailed description and inventory of all assets being purchased

2. Schedule 2 - Purchase Price Allocation: Breakdown of purchase price across different asset categories

3. Schedule 3 - Excluded Assets: List of specific assets excluded from the sale

4. Schedule 4 - Completion Deliverables: List of documents and items to be delivered at completion

5. Schedule 5 - Form of Transfer Documents: Pro-forma transfer documents required for specific assets

6. Schedule 6 - Encumbrances: List of any existing liens, charges or encumbrances on the assets

7. Appendix A - Required Consents: List of third party consents required for the transfer

8. Appendix B - Specific Warranties: Any additional warranties specific to particular assets

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

Philippines

Publisher

Ƶ

Document Type

Purchase Agreement

Cost

Free to use
Relevant legal definitions






















Clauses


























Relevant Industries

Manufacturing

Retail

Real Estate

Technology

Healthcare

Hospitality

Agriculture

Transportation

Energy

Mining

Construction

Professional Services

Food and Beverage

Telecommunications

Relevant Teams

Legal

Finance

Corporate Development

Operations

Procurement

Risk and Compliance

Business Development

Corporate Secretarial

Asset Management

Executive Leadership

Relevant Roles

Chief Executive Officer

Chief Financial Officer

General Counsel

Legal Director

Corporate Secretary

Business Development Manager

Finance Director

Operations Manager

Asset Manager

Procurement Manager

Commercial Director

Investment Manager

Managing Director

Company Secretary

Risk Manager

Compliance Officer

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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