Document background
The Letter of Intent For Business Collaboration is a crucial preliminary document used when two or more parties wish to explore potential business cooperation under German law. It serves as a roadmap for negotiations and due diligence processes, while clearly defining the scope of discussions and protecting confidential information. This document type is particularly important in the German business context, where pre-contractual obligations (culpa in contrahendo) carry significant legal weight. The LOI typically precedes more detailed agreements such as joint venture contracts, strategic alliance agreements, or other forms of business cooperation. It includes essential provisions required under German law while maintaining enough flexibility to allow parties to explore various collaboration possibilities. The document is commonly used when parties need to formalize their intentions and establish basic parameters for negotiation without committing to final terms.
