Document background
The Business Purchase Offer Letter is a crucial initial document in business acquisitions within the Philippine jurisdiction. It is typically used when a potential buyer has identified a target business and wishes to formally express their interest and proposed terms for purchase. The document serves multiple purposes: it demonstrates the buyer's serious intent, outlines the fundamental terms of the proposed transaction, and provides a framework for further negotiations. This letter needs to comply with Philippine commercial laws and business practices, including considerations under the Corporation Code of the Philippines and the Civil Code. While not legally binding in its entirety, certain provisions such as confidentiality and exclusivity periods may be drafted as binding commitments. The document typically precedes more comprehensive agreements and due diligence processes, making it an essential tool in the early stages of business acquisition negotiations.
