Letter Of Intent To Purchase Business Template for Pakistan

A Letter of Intent to Purchase Business is a crucial preliminary document used in the early stages of business acquisition negotiations in Pakistan. It serves as a formal expression of interest from a potential buyer to a business owner, outlining the basic terms and conditions under which they would be willing to proceed with the purchase. This document, while generally non-binding except for specific provisions, plays a vital role in Pakistani business transactions by providing a structured framework for negotiations and due diligence. It typically precedes the more detailed Purchase Agreement and helps parties align their expectations while complying with Pakistani legal requirements, including those under the Contract Act 1872 and Companies Act 2017. The document is particularly important in the Pakistani business context where it helps establish clear communication channels and demonstrates serious intent while protecting both parties' interests during the negotiation phase.

1. Letter Header: Date, sender's details, recipient's details, and reference line

2. Subject Line: Clear indication that this is a Letter of Intent to Purchase [Business Name]

3. Opening Statement: Formal introduction stating the purpose of the letter and identifying the parties involved

4. Business Identification: Clear description of the target business, including legal name, location, and nature of business

5. Purchase Intent: Clear statement of intention to purchase the business, subject to conditions

6. Proposed Terms: Key commercial terms including proposed purchase price, payment terms, and general scope of assets/liabilities to be included

7. Due Diligence: Statement regarding the need for and scope of due diligence investigation

8. Exclusivity: Period during which the seller agrees not to negotiate with other potential buyers

9. Timeline: Proposed timeline for due diligence, definitive agreement, and closing

10. Confidentiality: Statement regarding the confidential nature of the discussions and information shared

11. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions (like confidentiality and exclusivity)

12. Closing: Formal closing, signature blocks for both parties