Document background
The Letter Of Intent Sales document is a crucial preliminary agreement used in Austrian business transactions to establish the framework for a potential sale. It serves as a roadmap for negotiations and typically precedes the final sale agreement. This document type is particularly important in the Austrian legal context, where pre-contractual obligations and good faith requirements play a significant role. The Letter of Intent typically includes provisions about the proposed transaction structure, price ranges, timeline for due diligence, and any exclusivity periods. While mostly non-binding, certain sections such as confidentiality and exclusivity are usually binding. The document must comply with Austrian Civil Code (ABGB) and Commercial Code (UGB) requirements, and for international transactions, may need to consider the CISG. It's commonly used in business acquisitions, asset sales, and other significant commercial transactions where parties need to formalize their intentions before committing to detailed due diligence and final agreements.
