2. Where the company chooses compensation in cash or net shares, the company shall not issue shares, but the forward purchaser shall cover the credit position by purchases on the public share markets. If, on that date, the share price is higher than the purchase price set out in the contract, the entity shall pay the difference to the buyer in the future. If the share price is lower than the purchase price set in the contract, the term buyer pays the difference to the issuer. Futures contracts are not traded on a central exchange and are therefore considered over-the-counter (OTC) instruments. While their OTC nature facilitates the adaptation of conditions, the absence of a central clearing house also entails a higher risk of default. As a result, futures for the small investor are not as readily available as futures. As a general rule, the seller must ensure that the project is carried out substantially, in accordance with the plans and specifications verified and approved by the buyer during its duty of care. A buyer often asks for inspection, monitoring and/or authorization fees for different aspects of the project, for example. B significant changes to plans and specifications or changes to project authorizations. In certain situations, either the buyer or the seller (or both) may retain the right to demand changes to the plans at their own expense, including with respect to tenants` requirements. The seller must balance these rights with the rights that may be granted to other third parties, such as lenders (through closing guarantees), partners (through joint venture agreements), contractors (through general contracts) and other third parties. For these and other reasons, a seller may be reluctant to add additional permission from the buyer for non-major changes.
In addition, the seller would probably like to maintain its existing relationship as much as possible and avoid any conflict with a new representative of the buyer. The forward purchase agreement must reconcile the buyer`s information rights with the seller`s need for operational flexibility and final security. The futures contract can then be concluded on one of two methods allowing the term buyer to conclude his credit position. As a rule, the selling developer transfers ownership of the land to the investor`s buyer by a previous step corresponding to the signing of the term financing contract or, shortly thereafter, to the date of the conclusion of certain fixed conditions. As a result, the buyer becomes the owner of the property before or at the same time as the start of construction of the property. The total purchase price is fixed by the contracting parties before the start of the work. A Forward Purchase agreement is essentially a contract in which the developer/seller agrees again at an early stage to sell the concluded development to a buyer. Unlike a forward funding operation, the purchase price is usually not paid in full until the development is complete, with the developer financing the construction costs himself. . . .