Document background
The Non-Binding Letter of Intent to Purchase Business is a crucial preliminary document in business acquisitions within Pakistan's legal framework. It is typically used in the early stages of a business purchase transaction, after initial discussions but before detailed due diligence and definitive agreements. This document outlines the key terms and conditions of the proposed transaction while explicitly maintaining its non-binding nature, providing both parties with a clear understanding of the intended deal structure without creating legal obligations (except for specifically designated binding provisions such as confidentiality). The LOI serves as a roadmap for further negotiations and due diligence, typically including details about the proposed purchase price, transaction structure, timeline, and key conditions. While governed by Pakistani law, particularly the Contract Act 1872 and Companies Act 2017, its non-binding nature allows flexibility in negotiations while still demonstrating serious intent to proceed with the transaction.
