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Simple Letter Of Intent To Purchase for Indonesia

Simple Letter Of Intent To Purchase Template for Indonesia

A Letter of Intent to Purchase under Indonesian law is a preliminary written document that outlines a prospective buyer's intention to purchase specific assets, property, or business interests. While generally non-binding in nature (except for specific provisions like confidentiality), it serves as a formal expression of interest and sets out the basic terms and conditions of the proposed transaction. The document, governed by Indonesian civil law principles, particularly the Indonesian Civil Code (KUHPerdata), establishes the framework for further negotiations and due diligence processes while providing both parties with a clear understanding of the proposed transaction structure and timeline.

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What is a Simple Letter Of Intent To Purchase?

The Simple Letter of Intent to Purchase is a crucial preliminary document in Indonesian business transactions, commonly used when a potential buyer wishes to formally express their serious interest in acquiring assets, property, or business interests. This document, while typically non-binding, serves as a stepping stone towards a definitive purchase agreement and is governed by Indonesian law, particularly the Civil Code (KUHPerdata). It's particularly useful in situations where parties need to document their initial understanding before conducting due diligence or entering into detailed negotiations. The letter typically includes key commercial terms such as the proposed purchase price, basic transaction structure, timeline, and any exclusivity periods. It provides a framework for further negotiations while protecting both parties' interests through provisions regarding confidentiality and the non-binding nature of the document.

What sections should be included in a Simple Letter Of Intent To Purchase?

1. Date and Address Block: Formal business letter header with date and recipient's complete address

2. Subject Line: Clear identification of the document as a Letter of Intent to Purchase [Asset/Business/Property]

3. Opening Paragraph: Introduction of the parties and basic purpose of the letter

4. Description of Property/Asset: Clear identification and description of what is intended to be purchased

5. Proposed Purchase Price: Statement of the offered price or price range

6. Basic Terms: Key commercial terms including payment method and timing

7. Due Diligence: Brief outline of any required due diligence process

8. Timeline: Proposed timeline for completion of the transaction

9. Non-Binding Nature: Clear statement that this is a non-binding letter of intent (except for any specific binding provisions)

10. Closing and Signatures: Formal closing, signature blocks for both parties

What sections are optional to include in a Simple Letter Of Intent To Purchase?

1. Exclusivity Period: Used when buyer requires exclusive negotiation rights for a specified period

2. Confidentiality Provisions: Include when sensitive information will be shared and no separate NDA exists

3. Conditions Precedent: Used for complex transactions where certain conditions must be met before proceeding

4. Break Fee: Include when parties want to specify compensation if either party withdraws

5. Governing Law: Include when transaction involves parties from different jurisdictions

6. Costs and Expenses: Used when there's a need to specify who bears transaction costs

What schedules should be included in a Simple Letter Of Intent To Purchase?

1. Asset Schedule: Detailed list of assets intended to be purchased, if multiple items involved

2. Due Diligence Requirements: List of required documents and information for due diligence

3. Timeline Schedule: Detailed timeline of key dates and milestones if transaction is complex

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions




















Clauses




















Relevant Industries

Real Estate

Manufacturing

Retail

Technology

Agriculture

Mining

Construction

Healthcare

Education

Financial Services

Hospitality

Transportation and Logistics

Energy and Utilities

Professional Services

Relevant Teams

Legal

Finance

Business Development

Commercial

Procurement

Corporate Development

Mergers & Acquisitions

Real Estate

Operations

Executive Leadership

Risk Management

Strategy

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Business Development Manager

Legal Counsel

Corporate Lawyer

Investment Manager

Property Manager

Procurement Manager

Commercial Director

Managing Director

Acquisition Manager

Real Estate Manager

Operations Director

Company Secretary

Finance Director

Industries





Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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