Document background
The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in Philippine business transactions when parties are contemplating the purchase and sale of substantial assets. It serves as a roadmap for the transaction, documenting the parties' initial understanding of key commercial terms while allowing flexibility for detailed negotiations. This document is particularly important in the Philippine context where business transactions must comply with specific local regulations, including the Civil Code, Corporation Code, and foreign investment restrictions. The term sheet typically precedes comprehensive due diligence and the drafting of definitive agreements, making it an essential tool for efficient deal structuring and negotiation. It helps parties align their expectations early in the transaction process while minimizing the risk of misunderstandings during later stages of the deal.
