Document background
The Due Diligence Letter of Intent is a crucial preliminary document used in Hong Kong business transactions when one party wishes to conduct detailed investigations into another party's business before proceeding with a potential transaction. It serves as a roadmap for the due diligence process, typically issued after initial discussions but before entering into a definitive agreement. The document outlines key aspects such as the scope of due diligence, confidentiality obligations, and timeline, while clearly distinguishing between binding and non-binding provisions. Under Hong Kong's legal framework, special attention must be paid to compliance with the Personal Data (Privacy) Ordinance, Securities and Futures Ordinance (for listed companies), and Competition Ordinance. The document is particularly important in Hong Kong's dynamic business environment, where cross-border transactions and complex corporate deals are common.
