Document background
A Letter Of Intent To Sell Business is a crucial preliminary document used in Saudi Arabian business transactions when a company or individual intends to sell their business to another party. This document is particularly important in the Saudi Arabian context as it must align with both modern commercial practices and Islamic Sharia principles. It serves as a stepping stone between initial discussions and the final sale agreement, outlining key terms while allowing for due diligence and detailed negotiations. The document is commonly used when parties have reached a serious stage in discussions but need a formal framework for proceeding with detailed investigations and negotiations. It typically includes proposed transaction structure, indicative pricing, timeline, and any specific conditions required under Saudi law. While not usually legally binding in its entirety, certain provisions such as confidentiality and exclusivity may be enforced under Saudi commercial law.
