Pre-Agreement

Gepostet von am Apr 11, 2021 in Allgemein | Keine Kommentare

The pre-agreement is a private legal document in which a buyer reserves the right to acquire a property for payment of a sum of money and which is celebrated under the protection of Article 1454 of the Spanish Civil Code. In the event that the seller decides not to pursue the agreement and refuses to make the sale, Article 1454 of the Spanish Civil Code establishes a penalty which consists of returning double the amount paid by the buyer for the purchase before the purchase. However, if the buyer decides to refuse the purchase, he loses the total amount paid on the purchase without further penalty. If all goes well, the amount that is satisfied with the purchase before the agreement will be deducted from the last payment, so that this amount of money will be deducted from the final price. If these three requirements are in place and the buyer wishes to recover the full amount paid by the sales contract, he would be entitled to 6 months since the conclusion of the contract. If there is no legal right in 6 months, the right to a right is lost. The legality and applicability of „pre-agreements“ (LOI/MOU/TS/HOA) depend on the intent (supported by negotiations and provisions) of the prior agreement signed by the parties. In order to determine whether the parties wish to be held, the Court of Justice must take an objective approach that can be inferred from the circumstances of this case. To avoid uncertainty, caution and clarity are required when developing the language, titles and terms of these documents. For example, jurisdiction clauses, legal clauses, dispute resolution, confidentiality, exclusivity (deferred) and compensation („pause fees“) may be mandatory and considered survivors for these documents. In an ideal world, contracting parties are expected to conclude their trade relations and sign a written agreement before the contract begins. The general nature of a contract is that the parties negotiate the terms of their proposed transaction and build a formal contract expressing the rights, obligations and relationships of the parties before being implemented. In reality, however, parties sometimes come under commercial pressure to „put the show on the street“ or to start working as quickly as possible.

As such, the Memorandum of Understanding („ACT“), the Memorandum of Understanding („MOU“), the Reference Sheets („TS“) and the „heads of agreements“ („HOA“) are interim documents („preliminary agreements“ or „agreements to be concluded“) that are often used by the parties to document their expectations of the possible outcome of negotiations until a final contract is concluded. The purchase before the contract is the pre-sale step of a property, and therefore the agreement is formalized with this contract. However, there may be changes that may lead to the acquisition of the property and, on this point, the purchase before the contract is of great importance since it defines the legal consequences of this new situation. The purchase before the pre-contract sale will be signed between the owner of the property and the future buyer, and in the event that it is acquired by a couple, attention must be drawn to the existence of the marriage between the two, as well as to the matrimonial economic regime.