Document background
A Letter of Intent to Sell Business is typically used in the initial stages of a business sale transaction in Pakistan, serving as a crucial stepping stone between preliminary discussions and the final purchase agreement. This document is essential when parties have reached a general understanding of key terms but need to formalize their intentions before proceeding with detailed due diligence and negotiating definitive agreements. It outlines fundamental aspects such as purchase price, payment terms, exclusivity period, and conditions precedent, while typically maintaining a non-binding nature except for specific provisions. The document must align with Pakistani legal requirements, particularly the Contract Act 1872 and Companies Act 2017, and should consider local business practices and regulatory frameworks. It's particularly important in complex transactions where parties need to demonstrate serious intent and secure preliminary commitments before investing significant resources in the transaction.
