Document background
A Letter Of Intent Share Purchase Agreement is a crucial preliminary document used in corporate acquisitions in Saudi Arabia when parties wish to formalize their initial understanding before proceeding with a detailed due diligence process and final agreement. This document type is particularly important in the Saudi Arabian context, where business relationships and formal expressions of intent carry significant weight in commercial transactions. It typically includes both binding elements (such as confidentiality and exclusivity) and non-binding elements (such as the proposed purchase price and structure). The document must align with Saudi Arabian commercial law requirements and local business practices, while providing sufficient detail to guide the transaction process without creating unintended binding obligations. It serves as a roadmap for the transaction and is often required by boards, investors, and regulatory authorities to demonstrate serious intent before committing significant resources to the transaction.
