Document background
The Letter Of Intent Joint Venture is a crucial preliminary document used in Malaysian business transactions when two or more parties intend to form a joint venture but need to formalize their initial understanding before proceeding with detailed negotiations and due diligence. It serves as a roadmap for the proposed transaction, typically used in situations where parties have reached a preliminary agreement on key commercial terms but require a structured framework for further negotiation. The document is particularly important in the Malaysian context where business relationships often involve international parties and must comply with local regulatory requirements, including the Companies Act 2016 and relevant industry-specific regulations. While mostly non-binding, it typically includes binding provisions on confidentiality, exclusivity, and expenses, making it an essential tool for protecting parties' interests during the negotiation phase.
