A Letter of Intent in Contract is commonly used in Singapore business transactions as a preliminary step before entering into a definitive agreement. It is particularly valuable when parties need to document their serious intention to proceed with a transaction while still negotiating detailed terms. The document typically includes proposed commercial terms, timelines, and any binding obligations during the negotiation period. Under Singapore law, while most provisions are non-binding, certain clauses such as confidentiality and exclusivity can be made explicitly binding. This document helps structure negotiations and provides a clear roadmap toward the final agreement.
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1. Intent Declaration: Clear statement of the parties' intention to enter into future agreement
2. Project/Transaction Overview: Brief description of the proposed transaction or project
3. Key Terms: Main commercial terms and conditions being proposed
4. Timeline: Proposed schedule for negotiation and execution of definitive agreement
5. Non-Binding Statement: Clear statement of which provisions are non-binding (except specific binding terms)
1. Exclusivity Period: Period during which parties agree not to negotiate with others (if exclusive negotiations desired)
2. Confidentiality Provisions: Terms regarding handling of confidential information (if not covered by separate NDA)
3. Due Diligence Process: Outline of proposed due diligence process (for complex transactions)
4. Cost Allocation: Agreement on who bears costs during negotiation period (if relevant)
1. Term Sheet: Detailed outline of key commercial terms being proposed
2. Project Timeline: Detailed schedule of proposed transaction milestones
3. Corporate Authority Documents: Evidence of authority to enter into LOI (if required)
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