Document background
The Term Sheet For Share Purchase Agreement is a crucial preliminary document used in UAE corporate transactions to establish the framework for share acquisitions. It is typically prepared during the initial stages of negotiations when parties have reached a preliminary understanding on key commercial terms but before conducting detailed due diligence or drafting the final agreement. This document, while predominantly non-binding, sets out essential elements such as purchase price, payment terms, conditions precedent, and timeline, tailored to comply with UAE commercial law requirements. It serves multiple purposes: documenting preliminary agreements, guiding further negotiations, and providing a roadmap for legal counsel to draft the definitive Share Purchase Agreement. The document is particularly important in the UAE context where clear documentation of commercial intentions helps navigate the jurisdiction's specific regulatory requirements and business practices.
