Document background
An Exclusive Letter of Intent (LOI) is commonly used in Singapore business transactions as a preliminary step before entering into a definitive agreement. It serves to document serious intent while providing the potential buyer or investor with exclusive negotiating rights. The document typically includes key commercial terms, exclusivity period, confidentiality obligations, and conditions precedent. Under Singapore law, certain provisions of the LOI (such as confidentiality and exclusivity) are typically binding, while others remain non-binding until a definitive agreement is executed. This document is particularly crucial in complex transactions where parties need to secure exclusive negotiating rights while conducting due diligence.
