Document background
A Letter Of Intent Share Purchase Agreement is commonly used in the United States as a precursor to a definitive share purchase agreement. This document is crucial when parties are seriously considering a share transaction but need to establish preliminary terms before conducting detailed due diligence and drafting final agreements. It typically includes both non-binding elements (like proposed purchase price and structure) and binding elements (such as confidentiality and exclusivity). The document serves multiple purposes: it demonstrates serious intent, provides a framework for negotiations, outlines key terms, and protects both parties during the negotiation phase. It's particularly important in complex transactions where significant due diligence is required.
