Document background
A Letter Of Intent Share Purchase is commonly used in the Philippines as a preliminary step in corporate acquisitions and investments. It serves to document the serious intent of parties to proceed with a share purchase transaction while maintaining flexibility for negotiations. The document typically precedes the more detailed Share Purchase Agreement and is particularly important in the Philippine context where business relationships and preliminary commitments carry significant weight. It should comply with Philippine corporate laws, including the Revised Corporation Code and Securities Regulation Code. While mostly non-binding, it often includes binding provisions on confidentiality, exclusivity, and good faith negotiations. This document is essential for establishing clear communication between parties and securing initial commitments before proceeding with detailed due diligence and final documentation.
