Document background
A Letter Of Intent Commercial (Real Estate) is a crucial preliminary document used in Pakistani commercial property transactions to establish the initial understanding between parties before entering into a formal agreement. It is typically employed when parties have reached a preliminary agreement on key commercial terms but need to conduct due diligence, secure financing, or resolve other conditions before proceeding to a binding contract. The document, while generally non-binding, includes certain enforceable provisions such as confidentiality and exclusivity clauses. Under Pakistani law, particularly considering the Contract Act 1872 and property legislation, this document serves as a roadmap for the transaction, outlining proposed terms, conditions, timelines, and requirements for moving forward. It's particularly valuable in complex commercial real estate transactions where detailed negotiations and due diligence are necessary before finalizing a binding agreement.
