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Company Letter Of Intent for Singapore

Company Letter Of Intent Template for Singapore

A Letter of Intent under Singapore law is a preliminary written document outlining the basic terms and conditions of a proposed business transaction or relationship. While generally non-binding (except for specific clauses like confidentiality), it serves as a framework for future negotiations and demonstrates serious intent to proceed with a transaction. The document follows Singapore's legal framework, particularly the Contract Act and Companies Act, and typically includes key commercial terms, timelines, and conditions precedent.

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What is a Company Letter Of Intent?

A Company Letter of Intent is commonly used in Singapore's business environment as a preliminary step before entering into formal agreements. It signals serious interest in a business transaction while allowing parties to outline key terms and conditions without immediate binding commitments. The document typically includes proposed commercial terms, timelines, confidentiality provisions, and any exclusivity arrangements. Under Singapore law, while most provisions are non-binding, certain clauses like confidentiality can be explicitly made binding. This document is particularly useful in mergers, acquisitions, joint ventures, and significant commercial transactions.

What sections should be included in a Company Letter Of Intent?

1. Opening Statement: Company letterhead, date, and recipient details

2. Purpose Declaration: Clear statement of intent regarding the proposed transaction or relationship

3. Key Terms: Main commercial terms and conditions being proposed

4. Timeline: Proposed schedule for negotiations and completion

5. Non-Binding Statement: Clear indication that the LOI is non-binding (except for specific clauses)

6. Closing and Signature: Formal closing, signature blocks for authorized representatives

What sections are optional to include in a Company Letter Of Intent?

1. Exclusivity: Provisions for exclusive negotiations between parties for a specified period

2. Due Diligence: Framework for conducting due diligence investigations and information sharing

3. Break Fee: Terms regarding compensation if the deal doesn't proceed under specific circumstances

4. Confidentiality: Provisions regarding the handling of confidential information exchanged during negotiations

5. Governing Law: Specification of Singapore law as governing law and jurisdiction

What schedules should be included in a Company Letter Of Intent?

1. Term Sheet: Detailed commercial terms and conditions in bullet point format

2. Timeline Schedule: Detailed project milestones and deadlines for the proposed transaction

3. Corporate Information: Basic information about the parties involved including registration details and authorized representatives

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Singapore

Publisher

Ƶ

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions












Clauses















Industries

Singapore Contract Act (Cap. 53): Primary legislation governing contract formation, validity, and enforcement in Singapore

Common Law Principles: Fundamental principles of contract formation including offer, acceptance, consideration, and intention to create legal relations

Companies Act (Cap. 50): Main legislation governing company operations and corporate matters in Singapore

Business Registration Act (Cap. 32): Legislation governing business registration and related requirements in Singapore

Competition Act (Cap. 50B): Legislation relevant for LOIs involving potential mergers, acquisitions, or competitive matters

Securities and Futures Act: Relevant when LOI involves financial services or securities-related transactions

Employment Act: Applicable when LOI involves employment-related matters or workforce considerations

Binding vs. Non-binding Provisions: Legal consideration regarding which clauses in the LOI are intended to be legally binding

Confidentiality Requirements: Legal provisions for protecting confidential information shared during the LOI process

Exclusivity Provisions: Legal framework for any exclusive dealing arrangements specified in the LOI

Duration and Termination: Legal requirements for specifying the time period and conditions for terminating the LOI

Cross-border Regulations: International legal considerations if the LOI involves cross-border elements

Dispute Resolution: Legal framework for handling disputes, including choice of jurisdiction and resolution mechanisms

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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