Document background
The Asset Purchase LOI is a crucial preliminary document used in the United Arab Emirates when parties are contemplating a significant asset acquisition transaction. It serves as a roadmap for the proposed purchase, typically drafted after initial discussions but before comprehensive due diligence and final negotiations. The document outlines key commercial terms, timelines, and process requirements while maintaining flexibility for detailed negotiations. Under UAE law, while most provisions are non-binding, certain sections such as confidentiality and exclusivity are typically binding. This document is particularly important in the UAE context where business relationships and formal expressions of intent carry significant weight in commercial transactions. The LOI helps parties navigate local business practices and regulatory requirements while establishing a clear framework for the transaction's progression.
