Document background
The Commercial Purchase Letter of Intent (LOI) is a crucial preliminary document used in Canadian business transactions to outline the basic terms and understanding between parties before entering into a definitive purchase agreement. It serves as a roadmap for negotiating and documenting more detailed terms while providing structure to the due diligence process. While primarily non-binding, certain provisions such as confidentiality and exclusivity are typically binding. The document is particularly important in Canadian jurisdictions where it helps establish good faith negotiations and can influence the interpretation of subsequent agreements. It's commonly used in various commercial contexts, from simple asset purchases to complex business acquisitions, and must comply with both federal and provincial commercial laws.
