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Exclusive Letter Of Intent for Singapore

Exclusive Letter Of Intent Template for Singapore

An Exclusive Letter of Intent under Singapore law is a preliminary document that outlines the proposed terms of a transaction while granting exclusive negotiating rights to one party for a specified period. It combines both binding elements (such as exclusivity and confidentiality) and non-binding elements (such as the proposed transaction terms) under Singapore's legal framework, providing a structured approach to preliminary deal-making while maintaining legal compliance with local regulations.

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What is a Exclusive Letter Of Intent?

An Exclusive Letter of Intent (LOI) is commonly used in Singapore business transactions as a preliminary step before entering into a definitive agreement. It serves to document serious intent while providing the potential buyer or investor with exclusive negotiating rights. The document typically includes key commercial terms, exclusivity period, confidentiality obligations, and conditions precedent. Under Singapore law, certain provisions of the LOI (such as confidentiality and exclusivity) are typically binding, while others remain non-binding until a definitive agreement is executed. This document is particularly crucial in complex transactions where parties need to secure exclusive negotiating rights while conducting due diligence.

What sections should be included in a Exclusive Letter Of Intent?

1. Date and Parties: Identification of sender and recipient with full legal names and addresses

2. Purpose Statement: Clear statement of intent and transaction overview

3. Key Terms: Essential business terms and conditions being proposed

4. Exclusivity Period: Duration and scope of exclusive negotiating rights

5. Binding vs Non-binding Provisions: Clear distinction between enforceable and non-enforceable terms

6. Confidentiality: Terms regarding confidential information handling

7. Expiration Date: Clear deadline for acceptance or expiry of the LOI

What sections are optional to include in a Exclusive Letter Of Intent?

1. Due Diligence: Terms for conducting due diligence investigations - use for complex transactions requiring detailed investigation

2. Break Fee: Compensation if either party terminates negotiations - use for high-value transactions with significant preparation costs

3. Deposit Terms: Details of any required deposits or earnest money - use when financial commitment is required upfront

What schedules should be included in a Exclusive Letter Of Intent?

1. Term Sheet: Summary of key commercial terms being proposed

2. Timeline: Proposed schedule for completion of transaction

3. Required Approvals: List of regulatory or third-party approvals needed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
































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Industries

Contract Act 1872: Primary legislation governing contract formation, validity, and enforcement in Singapore

Competition Act (Cap 50B): Regulates anti-competitive practices; crucial for reviewing exclusivity clauses in the LOI

Specific Relief Act (Cap 321): Governs the enforceability of preliminary agreements and specific performance remedies

Electronic Transactions Act (Cap 88): Regulates electronic transactions and digital signatures if LOI is executed electronically

Stamp Duties Act (Cap 312): Relevant if the LOI involves property transactions or requires stamp duty payment

Evidence Act (Cap 97): Governs admissibility of evidence and relates to confidentiality provisions

Personal Data Protection Act 2012: Regulates the collection, use, and disclosure of personal data in confidentiality provisions

Limitation Act (Cap 163): Sets statutory time limits for legal actions and influences deadline settings

Arbitration Act (Cap 10): Governs arbitration proceedings if specified as dispute resolution method

Mediation Act 2017: Provides framework for mediation as an alternative dispute resolution method

Misrepresentation Act (Cap 390): Deals with false statements or misrepresentations made during contract formation

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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