Document background
The Business Purchase Offer Letter is a crucial document in the initial stages of a business acquisition process under German law. It is typically used when a potential buyer has identified a target business and wishes to formally communicate their interest and basic terms of the proposed purchase. The document serves multiple purposes: it demonstrates serious intent, outlines key commercial terms, and provides a foundation for further negotiations. Under German legal practice, while not fully binding, certain elements of the letter may create legal obligations, particularly regarding confidentiality and exclusivity if included. The letter should be drafted with consideration of German Civil Code (BGB) and Commercial Code (HGB) requirements, especially regarding contract formation and commercial transactions.
