Document background
A Term Sheet For Share Purchase Agreement is a crucial preliminary document used in corporate acquisitions and investments in the Philippines. It is typically prepared after initial negotiations but before detailed due diligence and final documentation, serving to memorialize the key commercial terms agreed between parties. The document outlines fundamental aspects such as purchase price, payment structure, conditions precedent, and timing, while considering Philippine regulatory requirements including foreign ownership restrictions, securities regulations, and competition laws where applicable. While generally non-binding (except for specific provisions), it provides the framework for drafting the definitive agreement and guides the due diligence process. This document is particularly important in the Philippine context where corporate transactions must navigate specific regulatory requirements under the Corporation Code and Securities Regulation Code.
