Document background
The Letter Of Intent Non Binding is a crucial preliminary document used in Philippine business transactions to outline the basic terms and understanding between parties before entering into a formal, binding agreement. This document type is particularly relevant in mergers and acquisitions, joint ventures, property transactions, and other significant business dealings where parties need to articulate their initial understanding while maintaining flexibility for negotiations. Under Philippine law, while the main provisions are explicitly non-binding, certain sections like confidentiality clauses can be made binding if specified. The document typically precedes more detailed due diligence and formal contract negotiations, providing a structured framework for these subsequent steps while protecting both parties' interests during the preliminary stages of their business relationship.
