The Intent To Buy Contract is a crucial preliminary document used in Malaysian business and property transactions when a potential buyer wishes to formally express their serious intention to purchase while maintaining certain conditions and protections. This document, while not a final purchase agreement, creates legally binding obligations under Malaysian law, particularly regarding exclusivity periods and confidentiality. It typically precedes the final sale and purchase agreement, providing a structured framework for due diligence and detailed negotiations. The document includes essential elements such as subject matter description, proposed purchase price, earnest money provisions, and key conditions, all aligned with Malaysian legal requirements including the Contracts Act 1950 and, where applicable, the National Land Code 1965.
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1. Parties: Identification and details of the potential buyer and seller, including registration/identification numbers and addresses
2. Background: Context of the transaction and general intent of the parties
3. Definitions: Key terms used throughout the agreement defined for clarity and legal certainty
4. Subject Matter: Clear identification and description of the item/property intended to be purchased
5. Purchase Price: Proposed purchase price and any conditions or assumptions affecting the price
6. Earnest Money: Details of any deposit or earnest money to be paid, including amount and payment terms
7. Due Diligence Period: Timeframe and conditions for buyer's investigation of the subject matter
8. Conditions Precedent: Prerequisites that must be fulfilled before proceeding to final purchase agreement
9. Exclusivity Period: Duration during which seller cannot negotiate with other potential buyers
10. Confidentiality: Obligations regarding confidential information exchanged during negotiations
11. Term and Termination: Duration of the intent to buy agreement and circumstances for termination
12. Governing Law: Confirmation of Malaysian law as governing law and jurisdiction
13. Execution: Signature blocks and execution formalities
1. Financing Conditions: Used when buyer's intent is subject to obtaining financing, specifying conditions and deadlines
2. Regulatory Approvals: Required for transactions that may need governmental or regulatory clearance
3. Property Specific Conditions: For real estate transactions, including land title investigations and property condition assessments
4. Business Purchase Provisions: For business acquisitions, including provisions about employees, contracts, and liabilities
5. Intellectual Property: When the purchase involves IP rights, detailing their treatment during due diligence
6. Environmental Matters: For transactions involving industrial property or businesses with environmental considerations
7. Tax Matters: When specific tax considerations need to be addressed in the preliminary stage
1. Schedule A - Subject Matter Details: Detailed description of the property/goods/business to be purchased
2. Schedule B - Purchase Price Calculation: Breakdown of purchase price components and any adjustments
3. Schedule C - Due Diligence Requirements: List of documents and information required for due diligence
4. Schedule D - Timeline: Key dates and deadlines for various stages of the transaction
5. Appendix 1 - Required Documents: List of documents to be provided by seller during due diligence
6. Appendix 2 - Form of Final Purchase Agreement: Draft or outline of the proposed final purchase agreement structure
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