Document background
The Letter Of Intent Development Agreement is a crucial preliminary document used in German real estate development projects to establish the framework for negotiations and future collaboration. It is particularly relevant when parties need to formalize their initial understanding while conducting due diligence and finalizing detailed terms. This document type combines elements of German contract law (BGB) with specific considerations for real estate development under the Baugesetzbuch. It typically precedes a full Development Agreement and includes essential provisions about the proposed project scope, timeline, exclusivity periods, and confidentiality requirements. The document is structured to clearly distinguish between binding and non-binding provisions, a crucial aspect under German law, and often includes preliminary commercial terms that will form the basis of the final agreement.
