Document background
The Letter Of Intent To Purchase is a crucial document in the pre-acquisition phase of a transaction under Dutch law. It is typically used when a potential buyer has serious interest in acquiring assets, shares, or a business and wants to formalize their intention while maintaining flexibility before the final purchase agreement. The document usually follows initial discussions and precedes detailed due diligence, containing key commercial terms, proposed timeline, and any exclusivity arrangements. While generally non-binding under Dutch law (except for specific provisions), it serves as a roadmap for the transaction and demonstrates commitment from both parties. This document is particularly important in the Netherlands' business-friendly environment, where international transactions are common and require clear frameworks for cross-border negotiations.
