Document background
The Preliminary Share Purchase Agreement is commonly used in Singapore corporate transactions as an initial binding document between parties contemplating a share sale. It serves as a crucial stepping stone between initial negotiations and the final share purchase agreement, allowing parties to document key commercial terms while maintaining flexibility for due diligence and detailed negotiations. This document typically includes essential terms such as price, timeline, exclusivity periods, and basic warranties, while being governed by Singapore law and regulatory framework. It's particularly useful in complex transactions where detailed due diligence is required or where parties need to secure financing or regulatory approvals.
