Document background
The Pre-Contractual Agreement is essential in Belgian business practice when parties are contemplating significant transactions or business relationships. This document is typically used before entering into detailed negotiations for mergers, acquisitions, joint ventures, or major commercial contracts. It sets out the framework for negotiations, including confidentiality obligations, exclusivity provisions if required, and the allocation of costs and risks during the negotiation phase. Under Belgian law, this agreement is particularly important as it addresses the principle of good faith in negotiations and pre-contractual liability, while also considering specific requirements of Belgian commercial and civil law. The document helps protect all parties' interests during the exploratory and negotiation phases, while clearly establishing that it does not create an obligation to enter into a final agreement.
