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.
North Carolina Negotiating and Drafting Further Assurances and Pre-Closing Assurances Provisions
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By having an Entire Agreement Clause, the contract will supersede any previous agreements and understandings between the parties, and therefore avoids the risk of any agreement made orally or in writing prior to the execution of the written contract being interpreted as being part of the legal contract between the ...
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.
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.
What Is a Further Assurance Clause? Further assurance clauses normally require all parties involved to act cooperatively and complete any actions that are deemed necessary once an agreement has been executed to make sure that the agreement's original intent is fully realized.
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.
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 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.