A Simple Letter of Intent is commonly used in Singapore business transactions as an initial step before formal contract negotiation. It provides a structured way to express serious interest while maintaining flexibility. The document typically includes basic terms, proposed timelines, and any preliminary agreements while clearly stating its non-binding nature. Under Singapore law, while LOIs are generally non-binding, certain provisions like confidentiality may be explicitly made binding. This document type is particularly useful for straightforward transactions where parties want to document their preliminary understanding without complex terms.
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1. Identification of Parties: Full legal names and addresses of all parties involved
2. Purpose Statement: Clear statement of intent and proposed transaction or relationship
3. Proposed Timeline: Key dates and deadlines for the intended transaction
4. Basic Terms: Outline of fuNDAmental terms and conditions
5. Non-Binding Statement: Clear statement regarding non-binding nature of the LOI
1. Confidentiality: Terms regarding confidential information handling, used when sensitive information will be shared
2. Exclusivity: Terms preventing negotiations with other parties, used in competitive situations
3. Due Diligence: Framework for information sharing and verification, used in complex transactions
1. Term Sheet: Summary of key commercial terms
2. Timeline Schedule: Detailed breakdown of proposed timeline and milestones
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