Document background
The Memorandum of Understanding Share Purchase is commonly used in Singapore as an initial step in share acquisition transactions. It is particularly useful when parties need to establish a framework for negotiations while conducting due diligence and finalizing detailed terms. The document typically precedes a definitive Share Purchase Agreement and allows parties to outline key commercial terms while maintaining flexibility. Under Singapore law, while most provisions are typically non-binding, certain clauses such as confidentiality and exclusivity can be made explicitly binding. This document is essential for complex transactions requiring detailed due diligence and multiple stakeholder approvals.
