Short Letter Of Interest for Germany

Short Letter Of Interest Template for Germany

A Letter of Interest under German law (Interessenbekundung) is a preliminary business document that formally expresses a party's interest in pursuing a potential transaction or business relationship. While primarily non-binding, it carries specific legal implications under German civil law, particularly regarding good faith negotiations (Treu und Glauben). The document serves to outline initial terms, establish a framework for further discussions, and may include provisions for confidentiality and exclusivity. It must be carefully drafted to comply with German legal requirements while maintaining its preliminary nature and avoiding unintended binding obligations.

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What is a Short Letter Of Interest?

The Short Letter of Interest (Interessenbekundung) is a crucial initial document in German business negotiations, used to formally express preliminary interest in a business opportunity while maintaining legal flexibility. It serves as a stepping stone between informal discussions and formal contractual agreements, typically used in scenarios such as potential acquisitions, joint ventures, investment opportunities, or significant business collaborations. Under German law, while generally non-binding, certain elements can create legal obligations, particularly regarding good faith negotiations (Treu und Glauben) under the German Civil Code (BGB). The document typically includes basic transaction terms, confidentiality provisions, and proposed next steps, while carefully avoiding creating unintended binding commitments. It's essential in German business culture as a formal way to initiate serious business discussions while maintaining professional standards and legal compliance.

What sections should be included in a Short Letter Of Interest?

1. Date and Address Block: Standard business letter format with current date and recipient's full address

2. Subject Line: Clear identification of the proposed transaction or project

3. Introduction: Identification of the writing party and brief statement of interest

4. Project/Transaction Overview: Brief description of the proposed transaction or project being considered

5. Expression of Interest: Clear statement of preliminary interest and general proposed terms

6. Next Steps: Proposed course of action for further discussions or negotiations

7. Contact Information: Key contact person's details for further communication

8. Signature Block: Formal closing with authorized signatory's details

What sections are optional to include in a Short Letter Of Interest?

1. Confidentiality Statement: Brief confidentiality provisions if sensitive information will be exchanged - consider if a separate NDA is needed

2. Exclusivity Period: Include if requesting exclusive negotiations for a specific period

3. Basic Terms: High-level outline of key commercial terms being considered, if appropriate to share at this stage

4. Timeline: Proposed schedule for negotiations and due diligence, if relevant

5. Non-Binding Nature: Explicit statement that the letter is non-binding (except for any specific binding provisions like confidentiality)

6. Cost Allocation: Statement regarding who bears the costs of preliminary discussions and due diligence

What schedules should be included in a Short Letter Of Interest?

1. Initial Term Sheet: Optional high-level summary of key commercial terms being considered

2. Corporate Information: Basic company information and credentials if not previously shared

3. Project Overview: More detailed description of the project or transaction scope if complex

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant Industries

Real Estate & Construction

Manufacturing

Technology & Software

Financial Services

Healthcare & Life Sciences

Energy & Utilities

Professional Services

Retail & Consumer Goods

Transportation & Logistics

Education & Research

Industrial & Engineering

Telecommunications

Relevant Teams

Legal

Corporate Development

Business Development

Finance

Executive Leadership

Mergers & Acquisitions

Strategy

Commercial Operations

Project Management

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Chief Financial Officer

Legal Counsel

Investment Manager

Corporate Development Director

Head of Mergers & Acquisitions

Project Manager

Commercial Director

Strategy Director

Partnership Manager

Senior Counsel

Development Director

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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