Document background
A Letter of Intent Letter is commonly used in Singapore business transactions as a preliminary step before entering into a definitive agreement. It serves to document the parties' serious intention to proceed with a transaction while allowing for further negotiation and due diligence. The document typically includes key commercial terms, timelines, and any binding obligations such as confidentiality and exclusivity. Under Singapore law, careful attention must be paid to clearly distinguishing between binding and non-binding provisions to avoid unintended legal obligations. The Letter of Intent Letter is particularly valuable in complex transactions where parties need to demonstrate commitment while maintaining flexibility.
