Document background
The Exclusive Letter of Intent is a crucial document in Indian business transactions where parties need to establish a formal framework for exclusive negotiations before entering into a definitive agreement. This document type is commonly used in mergers and acquisitions, joint ventures, significant commercial contracts, and real estate transactions. The document, while generally non-binding, creates legally enforceable obligations regarding exclusivity and confidentiality under Indian contract law. It typically includes key commercial terms, due diligence parameters, and timelines, serving as a roadmap for the transaction while protecting both parties' interests during the negotiation phase. The Exclusive Letter of Intent gains its legal foundation from the Indian Contract Act, 1872, and related business legislation, making it a reliable tool for businesses to signal serious intent and commit resources to pursuing a potential transaction.
