Document background
The Intent of Sale Agreement is a crucial preliminary document used in Indian commercial and property transactions when parties have agreed in principle to a sale but need to establish formal terms before executing the final agreement. This document serves multiple purposes: it demonstrates serious intent, sets out the framework for due diligence, establishes exclusivity periods, and outlines key commercial terms. Subject to Indian contract law, particularly the Indian Contract Act, 1872, an Intent of Sale Agreement helps protect both parties' interests during the pre-sale period by clearly defining their rights, obligations, and the conditions that need to be satisfied before proceeding to the final sale. The document is particularly valuable in complex transactions where detailed due diligence is required or where regulatory approvals need to be obtained before the sale can be completed.
