Letter Of Intent Joint Venture Template for Austria

A Letter Of Intent Joint Venture is commonly used in Austrian business practice as a preliminary step in establishing a joint venture relationship between two or more parties. This document type is particularly relevant when companies are exploring strategic partnerships, market expansion, or combining complementary resources and capabilities. It serves to document the parties' preliminary understanding while maintaining flexibility for detailed negotiations. Under Austrian law, while most provisions are non-binding, certain elements such as confidentiality and exclusivity clauses are typically binding. The document is especially useful in cross-border transactions involving Austrian entities or operations, as it helps align expectations and provides a structured approach to negotiations while considering both Austrian and EU legal frameworks. It typically precedes more detailed due diligence and the eventual drafting of definitive joint venture agreements.

1. Date and Parties: Identification of all parties involved in the proposed joint venture, including full legal names, registration numbers, and registered addresses

2. Background/Recitals: Brief description of each party's business and the context/rationale for the proposed joint venture

3. Definitions: Key terms used throughout the letter that require specific definition for clarity

4. Purpose of the Joint Venture: Clear statement of the intended business purpose and objectives of the proposed joint venture

5. Proposed Structure: Outline of the intended legal and operational structure of the joint venture

6. Initial Contributions: Preliminary indication of what each party will contribute (capital, assets, intellectual property, etc.)

7. Management and Control: Basic framework for how the joint venture will be managed and key decisions made

8. Confidentiality: Binding provisions regarding the confidentiality of discussions and shared information

9. Exclusivity: Any exclusivity arrangements during the negotiation period

10. Duration and Next Steps: Timeline for negotiation of definitive agreements and key milestones

11. Non-Binding Nature: Clear statement of which provisions are non-binding vs. binding (typically confidentiality, exclusivity, and governing law are binding)

12. Governing Law: Specification of Austrian law as the governing law

13. Signatures: Execution blocks for all parties