Document background
The Letter Of Intent Business Purchase is a crucial preliminary document used in Philippine business acquisitions to establish the initial framework for a potential transaction. It is typically employed when a serious buyer wishes to formally express their intention to purchase a business and negotiate key terms. The document outlines essential elements such as the proposed purchase price, payment terms, due diligence requirements, and any exclusivity periods, while maintaining its primarily non-binding nature except for specific provisions. Under Philippine jurisdiction, this document must align with local corporate regulations and business practices, serving as a stepping stone toward the final purchase agreement. It provides protection for both parties during the negotiation phase and helps structure the path toward completing the transaction.
