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The Business Letter of Intent (LOI) is a crucial preliminary document in Philippine business transactions, used when parties wish to formally express their serious intention to enter into a business arrangement while maintaining flexibility for detailed negotiations. This document type is particularly relevant in mergers and acquisitions, joint ventures, major commercial contracts, and significant business partnerships. The LOI Business format typically includes key commercial terms, conditions, and timelines while clearly stating its non-binding nature (except for specific provisions). Under Philippine law, while not legally binding as a whole, certain provisions such as confidentiality and exclusivity can be enforced if properly drafted. The document serves as a roadmap for further negotiations and due diligence, helping parties align their expectations and objectives before committing to a final agreement.

1. Date and Address Block: Formal business letter heading with date and recipient's complete address

2. Subject Line: Clear indication of the transaction or business opportunity being discussed

3. Opening Paragraph: Introduction of the parties and brief statement of intent

4. Background: Brief context of the proposed transaction or business relationship

5. Key Commercial Terms: Outline of the principal business terms being proposed

6. Proposed Timeline: Expected timeline for negotiation, due diligence, and completion

7. Non-Binding Nature: Clear statement that the LOI is non-binding except for specified provisions

8. Confidentiality: Binding provisions regarding confidentiality of discussions and information

9. Exclusivity: If applicable, binding provisions regarding exclusive negotiations

10. Closing and Signatures: Formal closing, signature blocks for both parties