Document background
A Letter of Intent to Purchase Product is commonly used in Singapore business transactions as a preliminary step before entering into a formal purchase agreement. This document serves to formalize a potential buyer's serious interest while allowing both parties to proceed with due diligence and detailed negotiations. It typically includes product specifications, proposed pricing, timeline, and any conditions precedent to the final purchase. Under Singapore law, while most provisions are non-binding, certain elements like confidentiality and exclusivity can be made explicitly binding. The document provides a structured framework for negotiations while protecting both parties' interests during the pre-contractual phase.
