Archive for October, 2010



This CONTRACT, made and entered into at  ______________,Philippines, by and between

__________________, of legal age, single/married to _______________, ______________ citizen, and with residence and postal address at ________________, hereinafter called the SELLER.

– and –

____________________, of legal age, single/married to _______________, ________________ citizen, and with residence and postal address at _____________________, hereinafter called the BUYER,


That, for and in consideration of the agreed purchase price of PESOS: _________________________________________ (P___________________), Philippines currency, of which the sum of ____________________ PESOS (P__________________ has been paid by the BUYER  upon the execution of this instrument and the balance to be payable within a period of _______months (or years,) by installment of not less than ___________ PESOS: ____________________________________________ (P_______________) to be due on or before the ________ day of _________, 20__________, and every calendar month thereafter, until fully paid, subject to interest at the rate of ________% per annum on the balance outstanding, the SELLER does by these present agree and bind himself/her-self to sell to the BUYER that certain real estate situated at ________________ with the improvements existing thereon, covered by Original/Transfer Certificate of Title No.___________ issued by the Register of Deeds of ________________________________ and more particularly described as follows:

(Description of Property)

That upon payment of the total purchase price above stipulated and the other obligations set forth hereunder, the SELLER shall forthwith execute and deliver to the BUYER a final Deed of Absolute Sale conveying the above-described property, free and clear of all liens and encumbrances except such as may be subsisting by operation of law, it being understood, however, that the expenses for the transfer of the title to the BUYER, including attorney’s fees, documentary stamps, and registration fees, shall be for the exclusive account of said BUYER;

That  the BUYER, to whom the possession of the subject property is deemed to have been delivered by virtue of this contract, shall have the option to pay the entire balance of the purchase price at any time before the period herein stipulated;

That in consideration of the actual possession which the BUYER is given to enjoy from the date of the execution of this instrument, all taxes and special assessments, if any, imposed by the government on the property, beginning with the month in which this contract has been entered into, shall be assumed and paid by said BUYER as if the property were his/her own, and if for any reason the payment thereof, including penalties, if any , shall have been advanced by the SELLER, the total amount thereof so advanced shall be chargeable to the BUYER with interest thereon at the rate of 12% per annum;

That in case the BUYER shall fail to pay, when due, any of the monthly installments herein stipulated for three consecutive months before the two-year period from and after this date, all rights and interest of said BUYER to the above-described property, including the improvements thereon, shall ipso facto  cease and terminate, and all payments made by him/her prior to said default shall be deemed forfeited and waived in favor in favor of the SELLER in settlement of rents and liquidated damages without prejudice, however, to the rights of such BUYER under Republic Act 6552 if he/she shall have completed to pay at least two years of installments;

That all payments due and payable under this contract shall be effected in the place/office of the SELLER, located at ____________________________________, unless another place shall have been subsequently by him/her in writing;

That (State other stipulations as may included, if any.)

That this agreement shall inure to the benefit of, and be binding upon, the parties hereto and their respective legal representatives and assigns, but the right of the BUYER by virtue hereof cannot be validly transferred or assigned to a third party without the prior written consent of the SELLER; and

That in case it shall become necessary for the SELLER to resort to court for the enforcement of his/her rights under this contract or for the repossession of the subject property in case of termination of this agreement by reason of default or other causes attributed to the BUYER, the said BUYER shall be liable to pay the cost of suit, attorney’s fees, and other incident expenses which in no case shall be less the 20% of the balance of the agreed purchase price then outstanding and other subsisting obligations arising thereunder.

IN WITNESS WHEREOF, the parties hereto have hereunto set their hands at the place first above written, on this ___________day of _____________, 20_______.

_____________________                        _______________________

Buyer                                                        Seller

TIN _____________                                 TIN _____________

With my marital consent:



Spouse of seller


Signed in the presence of:


_____________________           _____________________





Republic of the Philippines)

_____________________        ) SS.


BEFORE ME, a Notary Public in and in _______________ this _______ day of _________________, 20__, personally appeared the following:

Name:                                      CTC No./              Date & Place Issue

                                                Passport No./

                                                ___________ I.D.

________________________          ________________   ________________________


 ________________________         ________________   ________________________


all known to me to be the same persons who executed by the foregoing instrument and they acknowledged to me that the same is their free and voluntary act and deed as well as that of the corporations that respectively represent.

WITHNESS MY HAND AND SEAL in the place and on the date first above written.

Doc. No. _______;                     

Page No. _______;                    

Book No. ______;

Series of _______.


For advice on above subject, you may contact J.A.B. Bulao & Associates at or send a message to  Cell No. 09155205254


This agreement is made between the following parties: ___________________________________________________, and ________________________________________________ to organize a Corporation upon the following terms and conditions on this ______ day of ________________, 2010 at Makati City.

The parties shall form and organize a Corporation under the laws of the Philippines.  

Attached as Exhibit A are the proposed Articles of Incorporation.

The parties agree that the Corporation’s authorized stock shall be distributed, and consideration paid, as follows;

In consideration of the cash payment to the Corporation made by ____________________________________________ of the amount of  _________________________, _______________________________ shares of _________________________  (common or preferred stock shall be issued to him.

In consideration of the transfer to the Corporation of the following property: (list property, real or personal, to be transferred), ___________ shares of ________________ (common or preferred) stock shall be issued to ____________________________________.

The parties further agree not to transfer, sell, assign, pledge, or otherwise dispose of their shares of stock issued by the Corporation until they have first offered the shares for sale to the Corporation, and then, should the Corporation refuse such offer, to the other shareholders on a pro rata basis. All shares shall be offered at their book value. In the event the corporation refuses to purchase said shares, the other shareholders shall not have not less then thirty (30) days to purchase the shares. If the Corporation or other shareholders do not purchase all offered shares, remaining shares may be freely transferred to other parties by their owner without price restrictions.

The Corporation shall employ ________________________________________  as its manager for a set term of _____________ years and at an annual salary of ____________________, such  employment not to be terminated without cause and such salary not to be increased or decreased without the approval of ________ percent of the directors.

All parties to this agreement promise to use their best efforts to incorporate the organization and to commence its business in a timely fashion.





For advice on above subject, you may contact J.A.B. Bulao & Associates at or send a message to  Cell No. 09155205254


Below are interesting published articles on the global economic situations in relation to the Philippine economy. We hope these articles can be of help to lawyers as they try to assist foreign investors coming to the country.


In June 2010, it was reported that Greece was experiencing a very serious debt crisis. In May 2010 EU bailed out Greece. It extended loans payable in 5 years at interest of 5.2% per Annum.


This November 2010, EU bailed out Ireland. It agreed to give Ireland Euro 67.5 Billion in bailout loans payable in 10 years at interest of 5.7 percent per annum. Portugal may be next. Spain and Hungary were reported to be also in crisis.


EU is in crisis. Germany which is the biggest EU economy is tired of bail outs as it has experienced bailing out East Germany with great difficulty. If EU crisis worsens, then US will also suffer because 20% of US exports go to EU. And US will not let EU crisis worsens because it badly needs EU payments which US will use to pay its huge debts amounting to USD13 Trillion which is expected to be 88% of projected gross domestic product of USD14.6 Trillion by end of this year.


Surprisingly, it is observed that US dollar is fairly stable compared to other currencies. Why? US will do everything to prevent its dollar to appreciate much otherwise its exports will not be competitive. It cannot allow also its dollar to depreciate much because China holds much of these dollars and China can retaliate to hurt US.


With China awash with cash and exporting cheap products worldwide, is it not the greatest creditor at present. How can economic balance be maintained?


Meantime we read first about the Irish crisis and how EU bails it out.




30 NOVEMBER 2010-11-30


BRUSSELS – European Union nations agreed to give eauro67.5 billion ($89.4 billion) in bailout loans to Ireland on Sunday to help it weather the cost of its massive banking crisis, and sketched out new rules for future emergencies in an effort to restore faith in the euro currency.


          The rescue deal, approved by finance ministers at an emergency meeting in Brussels, means two of the eurozone’s 16 nations have now come to depend on foreign help and underscores Europe’s struggle to contain its spreading debt crisis. The fear is that with Greece and now Ireland shored up, speculative traders will target the bloc’s other weak fiscal links, particularly Portugal.


          In Dublin, Irish Prime Minister Brian Cowen said his country will take euro 10 billion immediately to boost the capital reserves of its state-backed banks, whose bad loans were picked up by the Irish government but have become too much to handle. Another euro25 billion will remain in reserve, earmarked for the banks.


          The rest of loans will be used to cover Ireland’s deficits for the coming four years. EU Chiefs also gave Ireland an extra year, until 2015, to reduce its annual deficits to 3 percent of GDP, the eurozone limit. The deficit now stands at a modern European record of 32 percent because of the runaway costs of its bank bailout program.


          Cowen said the accord reached after two weeks of tense negotiations in Brussels and Dublin to fathom the true depth of the country’s cash crisis “provides Ireland with vital time and space to successfully and conclusively address the unprecedented problems that we’ve been dealing with since this global economic crisis began.”


          However, in a surprise accounting move, European and IMF experts decided that Ireland first must run down its own cash stockpile and deploy its previously off-limits pension reserves in the bailout. Until now, Irish and EU law had made it illegal for Ireland to use its pension fund to cover current expenditures. This move means Ireland will contribute euro17.5 billion to its own salvation.


          The three groups offering funds to Ireland-the 16-nation eurozone, the full 27-nation EU, and the global donors of the International Monetary Fund-each have committed euro22.5 billion ($29.8 billion). Extra bilateral loans from Sweden, Denmark and Britain are included within the EU contribution totals.


          Ireland’s finance ministry said the interest rates on the loans would be 6.05 percent from the eurozone fund, 5.7 percent from the EU fund and 5.7 percent from the IMF. That’s higher than the 5.2 percent being paid by Greece for its own May bailout.


          Ajai Chopra, deputy director of the IMF’s European division who oversaw the Dublin negotiations, confirmed Ireland’s government would have freedom to set its own spending and tax plans.


          He said Ireland will have 10 years to pay off its IMF loans, and that the first repayment won’t be required until four-and-a-half years after a drawdown. Greece, in contrast, has three years to repay its loans.


According to the World Bank, recovery from the global financial crises is happening but sluggish due to the economic crisis in Europe caused by the Greek debt crisis. The hope for global economic growth lies with the developing countries. Read below the World Bank’s views as of June 2010.

Then, know about the Greek Debt Crisis in the following Article 0006. Greece is not the only European country facing debt problems. Spain, Portugal and Hungary are experiencing huge debt problems which may attain crisis level also.


AS OF:   JUNE 2010

Global Economic Prospects

Key messages
The global recovery is moving into a more mature phase led by growing domestic demand.

  • However, conditions in Europe may derail the recovery.
  • A more rapid adjustment of fiscal policy would be better for developing countries.
  • A decline in aid flows could have serious consequences for the poorest countries.
  •  More… 

Global outlook summary table
A table summarizing the forecast. More detailed information is available here.

Debt crisis
So far, the uncertainty about the sustainability of fiscal positions in several high-income European countries (EU-5)  has had limited impacts on developing countries. While stock markets have declined, spreads and credit default swaps for most countries have remained stable. So far industrial production and trade continue to expand rapidly. More…

Financial markets
Financial markets have recovered from their lows in 2009, but conditions remain tight and banks may be exposed to debt in EU-5 countries. Bond issuance declined sharply in May. International capital flows to developing countries are projected to reach about 3.5 percent of their GDP in 2012, up from 2.5 percent in 2009.  See also the topical annex on Financial market developments. More…

Medium-term prospects
Growth prospects are very uncertain because of the situation in Europe. Nevertheless, developing countries are projected to lead the recovery with growth rates around 6 percent. High-income countries growth will accelerate from about 2-2.3 percent in 2010 to between 2.3 and 2,7 percent in 2012.
Regional annexes touch on prospects in:


Risks and policy impacts
Should the crisis in Europe worsen, global growth could be, lower by between as much as 0.7 percentage points and in the case of a crisis, a double-dip recession in high-income countries may not be avoided. An aggressive fiscal consolidation response would prove to be win-win for both high-income and developing countries. Long-term growth and poverty reduction in low-income countries could be affected if bilateral aid flows fall as they have during previous recessions. More…

Concluding remarks
Policy in high-income countries should focus on reducing the uncertainty surrounding the Greek debt issue. Growth in developing (and high-income) countries would benefit from a more rapid consolidation. Poverty reduction in low-income countries could be impeded if aid flows are cut and countries are forced to cut back on infrastructure and human capital investment. More…


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