Document background
The Intent to Purchase Business Agreement is a critical preliminary document used in Canadian business acquisitions when a potential buyer wishes to formally express their serious intention to purchase a business while maintaining the flexibility to conduct due diligence and negotiate final terms. This document typically precedes the final purchase agreement and includes key elements such as proposed purchase price ranges, exclusivity periods, and confidentiality provisions. It's particularly valuable in complex business transactions where detailed due diligence is required and when parties need to establish clear parameters for their negotiations. While not binding for the final purchase, it often contains binding elements regarding confidentiality, exclusivity, and good faith negotiations. The agreement must comply with Canadian federal and provincial legislation, including corporate law, competition law, and securities regulations where applicable.
