Document background
The Preliminary Share Purchase Agreement is a critical document used in the early stages of corporate acquisitions under Belgian law. It serves as an intermediate step between initial discussions and the final share purchase agreement, typically employed when parties have reached preliminary understanding on key transaction terms but require a formal framework for further negotiations and due diligence. This document is particularly important in Belgian business practice, where it provides legal certainty during the negotiation phase while allowing flexibility for detailed terms to be finalized. The agreement typically includes provisions governed by the Belgian Companies and Associations Code and general contract law principles, covering aspects such as exclusivity, confidentiality, due diligence rights, and basic transaction structure. It's essential for transactions where parties need to formalize their intentions and establish clear parameters for moving forward, while maintaining the ability to address findings from due diligence and other pre-closing investigations.
