A Customer Letter of Intent is commonly used in Singapore business transactions as a preliminary step before entering into a formal contract. It demonstrates serious interest while allowing parties to outline key terms and expectations without full legal commitment. This document typically includes proposed commercial terms, timelines, and any binding provisions like confidentiality. Under Singapore law, while most provisions are non-binding, certain clauses can be explicitly made binding. The document serves as a roadmap for negotiations and helps establish clear communication between parties.
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1. Identification of Parties: Full legal names, addresses, and registration details of all parties involved
2. Purpose Statement: Clear statement of intention to enter into future agreement and general scope of proposed transaction
3. Scope of Proposed Transaction: Detailed outline of the proposed business arrangement, products, services, or deliverables
4. Key Commercial Terms: Overview of main commercial terms including pricing, payment terms, and delivery expectations
5. Timeline: Expected timeline for negotiation and execution of final agreement, including key milestones
1. Exclusivity Period: Terms granting exclusive negotiation rights for a specified period
2. Confidentiality Provisions: Terms regarding the exchange and protection of confidential information during negotiations
3. Break Fee: Provisions for compensation if either party withdraws from negotiations
4. Good Faith Negotiations: Commitment to negotiate in good faith and allocation of costs during negotiation period
5. Governing Law: Specification of Singapore law as governing law and jurisdiction for disputes
1. Term Sheet: Detailed summary of key commercial terms under consideration
2. Timeline Schedule: Detailed project timeline including key dates and milestones
3. Due Diligence Requirements: List of required documentation and information for due diligence
4. Preliminary Pricing Schedule: Initial pricing structure and commercial terms under consideration
Relevant legal definitions
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