Document background
The Letter Of Intent Share Purchase Agreement is a crucial preliminary document used in UAE corporate transactions when parties wish to formalize their initial understanding regarding a potential share acquisition. This document serves as a roadmap for the transaction, typically used after initial discussions but before detailed due diligence and final negotiations begin. While governed by UAE law, particularly the Commercial Companies Law and Civil Code, it primarily serves as a non-binding document except for specific provisions such as confidentiality and exclusivity. The document is especially relevant in the UAE's dynamic business environment, where cross-border transactions and complex corporate structures are common. It helps parties establish clear parameters for the proposed transaction, including timelines, basic terms, and due diligence requirements, while providing flexibility for detailed negotiations in the final Share Purchase Agreement.
