Document background
The Commercial Purchase Letter of Intent is a crucial preliminary document used in Philippine business transactions when a potential buyer wishes to formally express their serious interest in purchasing assets, businesses, or properties from a seller. This document serves as a framework for further negotiations and due diligence, typically preceding a definitive purchase agreement. While primarily non-binding, it demonstrates commitment to the transaction and outlines key commercial terms, timelines, and conditions. The document must comply with Philippine commercial law requirements, particularly the Civil Code of the Philippines and relevant business regulations. It is commonly used in significant commercial transactions where parties need to establish clear parameters for negotiation while maintaining flexibility for the final agreement. The Letter of Intent helps parties align their expectations and provides a roadmap for the transaction process while protecting both parties' interests through confidentiality and exclusivity provisions where applicable.
