A Letter Of Intent Joint Venture document is a crucial preliminary step in establishing a joint venture relationship between business entities under German law. It is typically used when two or more companies intend to explore a significant business collaboration or joint venture opportunity but need to formalize their intentions and establish ground rules for negotiations before committing to a final agreement. The document serves multiple purposes: it outlines the proposed structure of the joint venture, establishes confidentiality and exclusivity provisions, sets the framework for due diligence, and allocates preliminary costs and responsibilities. Under German law, while most provisions are non-binding, certain aspects like confidentiality and exclusivity are typically binding, and the principle of culpa in contrahendo creates pre-contractual obligations for good faith negotiations. This document is particularly important in the German business context, where preliminary agreements carry significant legal weight and help establish clear parameters for the negotiation process.

1. Parties: Full legal identification of the parties entering into the LOI, including registration details as required under German law

2. Background (Präambel): Context of the proposed joint venture, including business rationale and high-level objectives

3. Definitions: Key terms used throughout the document

4. Proposed Transaction Structure: Outline of the intended joint venture structure, including proposed ownership percentages and basic governance framework

5. Due Diligence: Framework for the exchange of information and conduct of due diligence investigations

6. Confidentiality: Binding provisions regarding the protection of confidential information and trade secrets

7. Exclusivity: If applicable, binding provisions regarding exclusive negotiations for a specified period

8. Timeline: Proposed schedule for negotiations, due diligence, and transaction completion

9. Costs and Expenses: Binding provisions regarding the allocation of costs and expenses

10. Binding Nature: Clear statement of which provisions are binding and non-binding

11. Governing Law and Jurisdiction: Specification of German law as governing law and jurisdiction for disputes