A Confirmation Letter of Intent is commonly used in Singapore business transactions to formally document preliminary agreements and intentions between parties. This document typically precedes more detailed, definitive agreements and serves to outline key terms and conditions while maintaining flexibility. Under Singapore law, while most provisions are usually non-binding, certain elements like confidentiality and exclusivity can be made explicitly binding. The document helps parties establish clear communication, demonstrate commitment, and set expectations for further negotiations.
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1. Date and Parties: Clear identification of all parties involved and date of the letter
2. Expression of Intent: Clear statement of the business intention or proposed transaction
3. Key Terms: Basic commercial terms being proposed
4. Timeline: Proposed timeline for next steps and validity period of the LOI
5. Non-Binding Statement: Clear statement regarding the non-binding nature of the LOI (if applicable)
6. Signature Block: Proper execution blocks for all parties
1. Exclusivity: Provisions for exclusive negotiations between parties for a specified period
2. Confidentiality: Provisions regarding the protection and handling of confidential information exchanged during negotiations
3. Cost Allocation: Terms specifying how costs during the negotiation period will be handled between parties
4. Binding Provisions: Specific terms that are intended to be legally binding despite the generally non-binding nature of the LOI
1. Term Sheet: Summary of key commercial terms being proposed
2. Timeline Schedule: Detailed timeline for transaction completion and key milestones
3. Corporate Authority Documentation: Evidence of authority to sign and supporting corporate documentation
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