This form provides boilerplate contract clauses that give further assurances and pre-closing assurances to the various parties of the contract agreement. Several different language options are included to suit individual needs and circumstances.
Montana Negotiating and Drafting Further Assurances and Pre-Closing Assurances Provisions
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By Practical Law Commercial. A boilerplate further assurance clause that seeks to ensure that the parties carry out any additional acts necessary to give effect to the contract, including the procuring of such acts by third parties.
Summary. This practice note discusses the inclusion of a further assurances clause in the boilerplate section of an agreement and provides a model sample of a further assurances clause. Such clauses are used to cure defects or cover matters that may not have been expressly dealt with in the agreement.
A standard boilerplate clause, in which the parties agree to cooperate with one another to take any actions not expressly specified in the agreement to carry out the intent of the agreement or implement its provisions.
Further assurance clauses are intended to create legal obligations requiring one or more of the parties to a contract to commit to do unspecified acts to reassure the other party will do what is reasonable or necessary to bring home the full benefit of the contract.
Each party agrees to perform any further acts and execute and deliver any further documents that may be reasonably necessary to carry out the provisions and intent of this Agreement.
This clause provides a buyer with the assurance that their right to possess the property won't be negatively impacted by any legal claims made against the property by a third party.
A good example of this is with an automobile dealership selling a car that requires financing. The dealer's covenant of assurance to the finance company is the assurance the title is perfected by filling out the proper paperwork reflecting the finance company having a lien against the car as collateral for the loan.