Exclusive Letter Of Intent Template for Belgium

The Exclusive Letter of Intent serves as a crucial preliminary document in significant business transactions under Belgian law. It is typically used when parties are seriously considering a major transaction such as a merger, acquisition, joint venture, or significant commercial arrangement, and want to ensure exclusive negotiation rights while they conduct due diligence and develop detailed agreements. The document combines binding elements (particularly regarding exclusivity and confidentiality) with non-binding provisions outlining the proposed transaction structure. Belgian law places particular emphasis on good faith in pre-contractual negotiations, making certain provisions of the LOI potentially binding even if not explicitly stated. The document typically precedes more detailed agreements and is especially important in cross-border transactions where Belgian entities are involved.

1. Sender and Recipient Details: Formal business letter header with complete contact information of both parties

2. Date: Date of the letter

3. Subject Line: Clear identification of the document as an Exclusive Letter of Intent

4. Introduction: Brief introduction identifying the parties and their intent to enter into negotiations

5. Transaction Overview: High-level description of the proposed transaction or business relationship

6. Exclusivity Period: Duration and terms of the exclusive negotiation period

7. Confidentiality Obligations: Terms regarding the confidential treatment of information exchanged

8. Due Diligence: Framework for the due diligence process and information exchange

9. Binding vs. Non-binding Provisions: Clear distinction between binding and non-binding elements of the letter

10. Duration and Termination: Period of validity and circumstances for termination

11. Governing Law: Specification of Belgian law as the governing law

12. Signature Blocks: Formal signature sections for both parties