An Asset Purchase Term Sheet is a crucial preliminary document used in Pakistani business transactions to establish the framework for asset acquisitions. It is typically employed when parties have reached initial understanding on key commercial terms but before conducting detailed due diligence or drafting definitive agreements. The document captures essential elements such as asset description, purchase price, payment terms, and conditions precedent, while adhering to Pakistani legal requirements. While mostly non-binding, it often includes binding provisions on confidentiality, exclusivity, and costs. The term sheet serves as a roadmap for legal counsel in preparing the final asset purchase agreement and helps identify key issues early in the transaction process. It's particularly important in the Pakistani context where it helps ensure compliance with local property transfer laws, stamp duties, and registration requirements.

1. Parties: Identification of the seller and purchaser, including full legal names and addresses

2. Background: Brief context of the transaction and relationship between the parties

3. Definitions: Key terms used throughout the term sheet

4. Transaction Overview: High-level description of the proposed asset purchase transaction

5. Purchase Price: Proposed consideration and payment structure

6. Assets Description: General description of assets to be purchased

7. Key Terms: Essential commercial terms including timing, conditions precedent, and basic obligations

8. Due Diligence: Framework for buyer's investigation of assets

9. Timing: Proposed timeline for completion of definitive agreements and closing

10. Confidentiality: Basic confidentiality obligations regarding the proposed transaction

11. Exclusivity: Any exclusivity period granted to the potential purchaser

12. Costs: Allocation of transaction costs between parties

13. Binding Effect: Clarification of which terms are binding and non-binding

14. Governing Law: Specification of Pakistani law as governing law