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Non Binding Contract for Austria

Non Binding Contract Template for Austria

A non-binding contract under Austrian law is a formal document that outlines the preliminary understanding or intentions between parties without creating legally enforceable obligations. Operating within the framework of Austrian civil law (ABGB), this document serves as a structured way to record discussions, proposed terms, and mutual understanding while explicitly maintaining its non-binding character. It typically includes provisions for confidentiality, good faith negotiations, and clear statements about its non-binding nature, while adhering to Austrian legal principles regarding pre-contractual obligations and business customs.

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Non Binding Contract

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What is a Non Binding Contract?

This Non-Binding Contract template is designed for use under Austrian law when parties wish to formalize their preliminary discussions or intentions without creating legally binding obligations. It is particularly valuable in complex business negotiations, potential joint ventures, or strategic partnerships where parties need to document their understanding before proceeding to binding agreements. The document typically includes sections outlining the proposed arrangement, confidentiality provisions, and explicit statements regarding its non-binding nature, while respecting Austrian legal principles and business practices. It serves as a crucial tool in the pre-contractual phase, helping parties align their expectations while maintaining flexibility to modify terms or withdraw from discussions.

What sections should be included in a Non Binding Contract?

1. Parties: Identification of all parties to the non-binding agreement, including full legal names and addresses

2. Background: Context and circumstances leading to the non-binding agreement, including the parties' intentions and relationship

3. Definitions: Key terms used throughout the document, including explicit definition of the non-binding nature of the agreement

4. Purpose and Scope: Clear statement of the agreement's objectives and scope, emphasizing its non-binding character

5. Non-Binding Nature: Explicit statement that the document is not legally binding and does not create enforceable obligations

6. Principal Terms: Overview of the main terms and arrangements being discussed or proposed

7. Duration and Timeline: Intended timeframe for discussions or arrangements, including any key milestones

8. Confidentiality: Handling of confidential information exchanged during discussions (this section may be binding despite the overall non-binding nature)

9. Costs and Expenses: Statement regarding each party's responsibility for their own costs during discussions

10. Termination: Process for concluding or terminating discussions

11. Signatures: Execution section with clear statement that signatures do not create binding obligations

What sections are optional to include in a Non Binding Contract?

1. Good Faith: Statement regarding parties' intention to act in good faith during discussions, used when parties want to emphasize cooperative approach

2. Exclusivity: Optional period of exclusive negotiations, included when parties want to prevent parallel discussions with others

3. Future Binding Agreement: Framework for converting into a binding agreement, used when parties anticipate progression to formal contract

4. Intellectual Property: Protection of IP rights during discussions, included when sensitive technical or proprietary information will be shared

5. Press Releases: Guidelines for public communications about the arrangement, included for high-profile or sensitive negotiations

6. Governing Language: Specification of prevailing language for interpretation, used in international contexts

What schedules should be included in a Non Binding Contract?

1. Term Sheet: Summary of key commercial terms under discussion

2. Contact Details: List of key contacts and representatives from each party

3. Timeline: Proposed schedule of discussions, negotiations, or implementation

4. Technical Specifications: Preliminary technical requirements or specifications being considered

5. Form of Future Agreement: Draft outline or heads of terms for potential future binding agreement

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Austria

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions






























Clauses



























Relevant Industries

Manufacturing

Technology

Financial Services

Real Estate

Healthcare

Education

Research & Development

Construction

Energy

Telecommunications

Professional Services

Retail

Agriculture

Transportation & Logistics

Relevant Teams

Legal

Business Development

Executive Leadership

Finance

Operations

Strategy

Procurement

Commercial

Research and Development

Project Management

Corporate Affairs

Investment

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Legal Counsel

Corporate Lawyer

Chief Financial Officer

Project Manager

Operations Director

Strategy Director

Procurement Manager

Commercial Director

Partnership Manager

Research Director

Development Manager

Investment Manager

Industries






Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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