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A Letter Of Intent Sales is a crucial preliminary document used in South African commercial transactions to outline the fundamental terms and understanding between parties contemplating a sale transaction. It serves as a stepping stone toward a definitive agreement, typically used when parties have reached a basic understanding but need to formalize their intentions before proceeding with detailed due diligence and negotiations. The document includes key commercial terms, timelines, and process requirements while usually maintaining a non-binding nature except for specific provisions like confidentiality and exclusivity. Under South African law, while not legally binding as a whole, certain provisions may create legal obligations, making it important to draft carefully and in compliance with relevant legislation such as the Consumer Protection Act and common law principles of contract formation.

1. Letter Header & Date: Formal business letter header including sender's details, recipient's details, and date

2. Addressee Details: Full details of the recipient party, including proper company name and address

3. Subject Line: Clear identification of the document as a Letter of Intent for the proposed sale

4. Introduction: Brief introduction identifying the parties and general purpose of the letter

5. Transaction Overview: High-level description of the proposed transaction and assets/business to be purchased

6. Key Commercial Terms: Essential terms including proposed purchase price, payment terms, and basic structure

7. Timeline: Proposed schedule for due diligence, negotiation, and completion

8. Due Diligence: Overview of the proposed due diligence process and requirements

9. Exclusivity: Statement regarding any exclusivity period for negotiations

10. Confidentiality: Basic confidentiality obligations regarding the proposed transaction

11. Non-Binding Nature: Clear statement about which provisions are non-binding vs. binding

12. Next Steps: Outline of immediate next steps and contact persons

13. Closing: Standard letter closing with signature blocks