Document background
The Joint Venture LOI is a critical preliminary document used when two or more parties intend to form a joint venture under Austrian law but need to formalize their initial understanding before proceeding with detailed negotiations and due diligence. This document type is particularly relevant in cross-border transactions where one party is entering the Austrian market or when Austrian companies are forming strategic partnerships. The LOI typically precedes the more comprehensive Joint Venture Agreement and serves to outline key commercial terms while providing certain binding obligations (such as confidentiality and exclusivity) during the negotiation phase. It must comply with Austrian civil and commercial law requirements while remaining flexible enough to allow for detailed negotiations of the final agreement. The document is especially crucial in complex joint ventures where significant due diligence and regulatory approvals may be required before finalizing the partnership.
