Non Binding Contract for the Netherlands

Non Binding Contract Template for Netherlands

A non-binding contract governed by Dutch law that serves as a preliminary agreement between parties to outline their intentions and proposed terms of cooperation without creating legally binding obligations. This document follows the principles of Dutch civil law and commercial practice, incorporating key elements of Dutch contract formation while explicitly maintaining its non-binding nature. It provides a framework for future negotiations and potential collaboration while protecting both parties' interests through clearly defined terms, confidentiality provisions, and good faith obligations, all within the context of the Dutch legal system.

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What is a Non Binding Contract?

This Non Binding Contract is commonly used in Dutch business practice during preliminary negotiations and discussions between parties who wish to explore potential business relationships or transactions without immediately assuming legal obligations. It serves as a formal documentation of parties' intentions and understanding while maintaining flexibility for future negotiations. The document typically includes proposed terms, confidentiality provisions, and timelines, while explicitly stating its non-binding nature under Dutch law. This type of agreement is particularly valuable in complex commercial arrangements where parties need to outline their preliminary understanding before committing to a binding agreement, and it reflects Dutch legal principles regarding pre-contractual relationships and good faith negotiations.

What sections should be included in a Non Binding Contract?

1. Parties: Identification of all parties involved, including full legal names and addresses

2. Background: Context of the discussions and relationship between the parties

3. Definitions: Key terms used throughout the document

4. Non-Binding Nature: Express declaration that the document is not legally binding

5. Purpose and Intent: Clear statement of the parties' objectives and intended future relationship

6. Subject Matter: Overview of the proposed transaction or relationship being discussed

7. Duration: Period during which the non-binding arrangement will be in effect

8. Confidentiality: Basic confidentiality obligations (note: these provisions are typically binding even in non-binding agreements)

9. Costs: Statement regarding each party bearing their own costs

10. Signatures: Execution section with clear statement about non-binding nature

What sections are optional to include in a Non Binding Contract?

1. Exclusivity: Used when parties agree not to negotiate with others for a specified period

2. Good Faith: Include when parties wish to emphasize commitment to honest and fair negotiations

3. Termination: Include when specific termination rights or notice periods are desired

4. Governing Law: Include when parties want to specify which law governs the interpretation of the document

5. Dispute Resolution: Include when parties want to specify how potential disputes should be handled

6. Press Releases: Include when public announcements need to be controlled

7. Implementation Timeline: Include when there's a need to outline expected milestones or deadlines

What schedules should be included in a Non Binding Contract?

1. Term Sheet: High-level summary of key commercial terms under discussion

2. Contact Details: List of key contacts for each party

3. Proposed Timeline: Indicative schedule for negotiations and potential future agreement

4. Subject Matter Description: Detailed description of the proposed transaction or relationship

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

Cost

Free to use

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