Document background
A Letter Of Intent To Buy is commonly used in Singapore as a preliminary step in significant purchase transactions. It serves to document the serious interest of a potential buyer and outline key terms before proceeding with detailed due diligence and negotiation of definitive agreements. The document typically includes proposed purchase price, timeline, due diligence requirements, and any exclusivity arrangements. While generally non-binding, it may contain certain binding provisions such as confidentiality obligations. Under Singapore's legal system, which combines common law principles with statutory requirements, the LOI helps parties establish clear parameters for their proposed transaction while maintaining flexibility for detailed negotiations.
