Good Faith Deposit Contract Template for Singapore

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Key Requirements PROMPT example:

Good Faith Deposit Contract

"Need a Good Faith Deposit Contract under Singapore law for a $5 million property purchase, where the deposit is 10% and will be held in escrow until March 2025, with specific provisions for interest accrual."

Document background
The Good Faith Deposit Contract serves as a crucial document in significant transactions where parties need to demonstrate genuine commitment. It is commonly used in Singapore for real estate transactions, business acquisitions, and major commercial deals. The contract protects both parties by clearly defining the deposit terms, conditions for return or forfeiture, and relevant timelines. Under Singapore law, this document must comply with the Contract Act, Banking Act, and other relevant legislation to ensure enforceability and proper handling of funds.
Suggested Sections

1. Parties: Identification and details of the depositor and recipient

2. Background: Context and purpose of the good faith deposit

3. Definitions: Key terms used throughout the agreement

4. Deposit Amount: Specification of deposit amount and payment terms

5. Purpose of Deposit: Clear statement of what the deposit secures

6. Return or Forfeiture Conditions: Conditions under which deposit will be returned or forfeited

7. Payment Instructions: Details of how and where deposit should be paid

Optional Sections

1. Interest Provisions: Terms regarding any interest earned on deposit when the deposit is held for extended period

2. Escrow Arrangements: Terms for third-party holding of deposit when using escrow agent

3. Dispute Resolution: Specific procedures for resolving disputes, recommended for high-value deposits or complex transactions

Suggested Schedules

1. Payment Schedule: Timeline for deposit payment if in installments

2. Bank Details: Account information for deposit payment

3. Related Transaction Documents: References to main transaction documents

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Contract Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore, including fundamental principles of offer, acceptance, consideration, and intention to create legal relations

Conveyancing and Law of Property Act (Cap. 61): Regulates property transactions and the treatment of deposits in property-related contracts in Singapore

Banking Act (Cap. 19): Governs banking operations and financial transactions, including the handling of deposits and banking relationships

Electronic Transactions Act (Cap. 88): Provides legal framework for electronic transactions and digital payments in Singapore

Civil Law Act (Cap. 43): Contains provisions regarding the treatment of deposits, including rules about forfeiture and recovery

Consumer Protection (Fair Trading) Act: Protects consumer interests and ensures fair trading practices in commercial transactions

Unfair Contract Terms Act (Cap. 396): Regulates unfair terms in contracts and provides protection against unreasonable contract conditions

Mediation Act 2017: Provides framework for mediation as a dispute resolution mechanism in Singapore

Arbitration Act (Cap. 10): Governs arbitration proceedings and enforcement of arbitral awards in Singapore

Corruption, Drug Trafficking and Other Serious Crimes (Confiscation of Benefits) Act: Contains anti-money laundering provisions and requirements for handling large financial transactions

Limitation Act (Cap. 163): Sets time limits for bringing legal actions and claims related to contracts and other civil matters

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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