The Simple Letter of Intent (LOI) is a crucial preliminary document in German business practice, commonly used in various commercial transactions including mergers and acquisitions, joint ventures, real estate transactions, and significant commercial partnerships. While governed by German law, particularly the German Civil Code (BGB), it serves as a roadmap for negotiations and due diligence processes. The document typically outlines key commercial terms, timeline expectations, and any binding provisions (such as confidentiality or exclusivity) while maintaining its predominantly non-binding nature. A Simple Letter of Intent is particularly valuable in the German business context where preliminary agreements often play a significant role in establishing clear parameters for future negotiations while managing legal risks associated with pre-contractual obligations (culpa in contrahendo).

1. Letter Header: Date, recipient's full details, sender's full details in proper German business letter format

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

3. Opening Paragraph: Brief introduction and context of the proposed transaction or relationship

4. Main Transaction Details: Core elements of the proposed transaction including basic terms, proposed structure, and key commercial points

5. Timeline: Proposed schedule for negotiations, due diligence, and completion of the final agreement

6. Non-Binding Nature: Clear statement that the LOI is non-binding except for specific provisions

7. Closing and Signatures: Formal closing, space for signatures of authorized representatives