Document background
An Asset Purchase Letter of Intent is a crucial preliminary document used in Philippine business transactions when one party intends to purchase specific assets from another. It serves as a roadmap for the transaction, outlining key terms while maintaining flexibility for detailed negotiations. This document is particularly important in the Philippine context where business relationships and preliminary agreements carry significant weight in commercial dealings. The LOI typically precedes the more detailed Asset Purchase Agreement and helps parties align their expectations early in the transaction process. It addresses essential elements such as asset identification, proposed pricing, due diligence parameters, and timeline, while usually maintaining a non-binding nature except for specific provisions like confidentiality and exclusivity. The document must be drafted in compliance with Philippine civil law and relevant regulatory requirements, particularly considering sector-specific regulations that may apply to the assets in question.
