Document background
The Purchase Term Sheet is a crucial preliminary document used in Malaysian commercial transactions to establish the fundamental terms of a proposed purchase. It serves as a roadmap for negotiations and subsequent documentation, typically preceding a detailed purchase agreement. This document is particularly valuable in complex commercial transactions where parties need to agree on key commercial terms before proceeding with detailed due diligence and definitive documentation. Under Malaysian law, while the term sheet is generally non-binding except for specific provisions like confidentiality, it demonstrates parties' serious intention to proceed with the transaction and outlines the framework for the final agreement. The document should comply with Malaysian commercial law principles, including the Contracts Act 1950 and related legislation, while maintaining flexibility for negotiation of final terms.
