The Small Business Letter Of Intent For Business is a crucial preliminary document used in the German business environment when small businesses are considering entering into a formal business relationship or transaction. It serves as a roadmap for future negotiations while documenting the parties' preliminary understanding and commitment to good-faith negotiations. This document type is particularly relevant in the German context where business relationships typically begin with formal documentation, even at the preliminary stage. The LOI helps establish clear expectations and boundaries while adhering to German legal requirements, including those set forth in the BGB (German Civil Code) and HGB (German Commercial Code). While primarily non-binding, certain provisions such as confidentiality and exclusivity can be explicitly made binding, reflecting the German legal system's approach to preliminary agreements. It's commonly used before entering into more detailed negotiations for business partnerships, acquisitions, or significant commercial relationships.

1. Header and Date: Formal business letter header including sender's details, recipient's details, and date

2. Subject Line: Clear identification of the document as a Letter of Intent and brief reference to the business opportunity

3. Opening Statement: Formal greeting and introduction of the parties involved

4. Purpose: Clear statement of the business opportunity or transaction being contemplated

5. Scope: Outline of the proposed business relationship or transaction scope

6. Key Terms: Principal commercial terms and conditions being proposed

7. Timeline: Proposed schedule for negotiations and completion of the final agreement

8. Confidentiality: Basic confidentiality provisions regarding the proposed transaction

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

10. Closing and Signatures: Formal closing, signature blocks for both parties