Document background
The Notice of Intent to Purchase is a crucial preliminary document in Saudi Arabian business transactions, serving as a formal declaration of a party's serious intention to acquire specific assets, property, or business interests. This document is typically used when a potential buyer has identified a target acquisition and wants to formally communicate their purchase intention while maintaining flexibility before entering into a binding agreement. It includes essential information such as party details, asset description, proposed terms, and timeline, all while ensuring compliance with Saudi commercial laws and Sharia principles. The notice helps establish good faith negotiations and can be used to secure exclusive negotiation periods. While not a binding purchase agreement, it often serves as the foundation for subsequent detailed negotiations and due diligence processes.
