Document background
The Asset Purchase Agreement Term Sheet is a crucial preliminary document used in Austrian business transactions to establish the fundamental terms of an asset purchase before proceeding with detailed due diligence and definitive documentation. It serves as a roadmap for the transaction, typically drafted after initial commercial discussions but before significant resources are committed to detailed due diligence and documentation. The term sheet captures the parties' preliminary understanding of key terms such as asset scope, purchase price, conditions precedent, and timeline, while usually remaining non-binding except for specific provisions. Under Austrian law, while term sheets (Punktation) can be binding if the parties so intend, they are typically structured as non-binding documents with only certain provisions (such as confidentiality and exclusivity) being explicitly binding. This approach aligns with Austrian commercial practice and provides flexibility for detailed negotiations while establishing clear parameters for the transaction.
