Document background
A Letter of Intent Share Purchase is a crucial preliminary document used in Australian corporate transactions to establish the framework for a potential share acquisition. It serves as a stepping stone between initial discussions and the final share purchase agreement, outlining the key commercial terms and conditions while typically maintaining a non-binding nature for most provisions except for specific terms such as confidentiality and exclusivity. The document is commonly used in scenarios where parties want to formalize their initial understanding and set clear parameters for further negotiation and due diligence, while operating within the Australian legal framework, particularly under the Corporations Act 2001 (Cth) and relevant state laws. It provides protection for both parties during the negotiation phase and helps ensure alignment on critical aspects of the transaction before significant resources are committed to detailed due diligence and documentation.
