Document background
The Deposit Agreement For Business Purchase serves as a preliminary agreement in business acquisition transactions under Malaysian law. It is typically used when a prospective buyer has identified a business for purchase and wishes to secure their interest while conducting due diligence. This document establishes the terms for the deposit payment, which usually ranges from 2% to 10% of the total purchase price, and outlines the conditions under which the deposit may be refunded or forfeited. It provides protection for both parties during the pre-purchase phase by clearly defining their rights and obligations, the due diligence period, and the path to completing the full business purchase. The agreement is essential in Malaysian business transactions as it demonstrates the buyer's serious intent while providing the seller with security during the negotiation and due diligence process.
