Pre Contract Agreements are essential documents used in Singapore business transactions to regulate the negotiation process before finalizing a main agreement. These agreements typically arise when parties need to exchange sensitive information or commit resources to exploring a potential transaction. A Pre Contract Agreement provides legal protection by establishing confidentiality obligations, exclusivity terms if required, and the framework for good faith negotiations. Under Singapore law, these agreements are particularly important in complex commercial transactions where significant preparatory work is needed before finalizing the main contract.
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1. Parties: Identification and details of all parties involved in the pre-contract agreement
2. Background: Context, purpose, and objectives of entering into the pre-contract agreement
3. Definitions: Key terms and their meanings used throughout the agreement
4. Duration: Timeframe for negotiations and validity period of the pre-contract agreement
5. Confidentiality Obligations: Terms regarding the handling, use, and protection of confidential information exchanged during negotiations
6. Good Faith Obligations: Commitment to negotiate in good faith and general conduct expectations
7. Governing Law: Specification of Singapore law as the governing law and jurisdiction
1. Exclusivity: Provisions preventing parties from negotiating with other parties during the specified period
2. Cost Allocation: Terms specifying how pre-contract costs and expenses will be shared between parties
3. Break Fee: Provisions for compensation if negotiations fail or are terminated under specific circumstances
4. Intellectual Property Rights: Protection and ownership of IP rights during the negotiation period
5. Dispute Resolution: Process for resolving any disputes arising during the pre-contract period
1. Schedule 1 - Timeline: Proposed timeline for negotiations and key milestones
2. Schedule 2 - Information Requirements: List of required information and documents to be provided by each party
3. Schedule 3 - Authorized Representatives: List of persons authorized to negotiate and make decisions on behalf of each party
4. Schedule 4 - Confidential Information: Specific details of what constitutes confidential information for each party
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