Document background
The Letter of Intent to Purchase is a crucial preliminary document in Malaysian business transactions, used when a potential buyer wishes to formally express their serious intention to purchase an asset, property, or business. This document serves as a stepping stone between initial discussions and a final purchase agreement, typically including key terms such as proposed purchase price, exclusivity period, and due diligence requirements. While predominantly non-binding, except for specific provisions like confidentiality and exclusivity, it plays a vital role in Malaysian business practices by providing a clear framework for negotiations and demonstrating commitment to the transaction. The document must comply with Malaysian contract law principles, including the Contracts Act 1950, and may need to consider Shariah law principles depending on the transaction nature.
