Document background
The Letter of Intent Termination is a crucial document used when parties need to formally end preliminary agreements or negotiations that were established through a Letter of Intent. This document type is particularly important in the Austrian legal context, where pre-contractual obligations and good faith requirements are strongly enforced under the Civil Code (ABGB). The termination letter must carefully address any binding provisions from the original LOI, handle confidentiality obligations, and manage potential liability under the culpa in contrahendo doctrine. It's essential when business negotiations are concluding without proceeding to a final agreement, when circumstances have changed making the intended transaction impossible or undesirable, or when parties need to formally document the end of their preliminary arrangements.
