Document background
The Conditional Letter of Intent is a crucial document in UAE commercial practice, typically used during the preliminary stages of significant business transactions. It serves as a bridge between initial discussions and final agreements, providing a structured framework for further negotiations while protecting both parties' interests. The document outlines key commercial terms, conditions precedent, and identifies which provisions are immediately binding (such as confidentiality and exclusivity) and which are subject to further negotiation. In the UAE context, this document must comply with Civil and Commercial Code requirements, particularly regarding good faith negotiations and preliminary agreements. Common applications include mergers and acquisitions, real estate developments, joint ventures, and significant commercial contracts, where parties need to formalize their intentions while maintaining flexibility for detailed negotiations.
