Document background
A Letter of Intent to Sell Business is commonly used in Singapore as the first formal step in a business sale transaction. It serves to document the serious intention of both parties to proceed with the transaction and outlines the fundamental terms of the proposed deal. This document, while generally non-binding except for specific provisions like confidentiality, provides a framework for further negotiations and due diligence. It typically precedes the definitive purchase agreement and helps parties align their expectations while complying with Singapore's corporate and commercial law requirements. The LOI helps establish clear communication between parties and can be used to secure exclusivity periods for negotiations.
