The Professional Letter of Intent is a crucial preliminary document in Belgian business practice, typically used before entering into detailed negotiations for significant business transactions. It serves to memorialize the parties' initial understanding and establish ground rules for negotiations, while potentially creating certain binding obligations (such as confidentiality and exclusivity). Under Belgian law, this document must be drafted carefully to balance the preliminary nature of discussions with the principle of good faith negotiations embedded in Belgian Civil Code. The Letter of Intent should clearly distinguish between binding and non-binding provisions to avoid unintended legal consequences, as Belgian courts may interpret pre-contractual documents as creating enforceable obligations. It's particularly important in complex transactions where parties need to outline key terms before committing resources to detailed due diligence and final agreement negotiations.
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1. Header Information: Date, recipient's full details, sender's full details, and reference line
2. Subject Line: Clear statement of the letter's purpose
3. Introduction: Brief context of the parties' relationship and purpose of the letter
4. Transaction Overview: High-level description of the proposed transaction or business relationship
5. Key Terms: Main commercial terms and conditions being proposed
6. Timeline: Proposed schedule for negotiations and completion of the final agreement
7. Confidentiality Statement: Basic confidentiality obligations regarding the proposed transaction
8. Non-Binding Nature: Clear statement about which provisions are binding and non-binding
9. Next Steps: Proposed actions and expectations moving forward
10. Closing: Formal closing, signature block, and contact details
1. Exclusivity Period: Used when parties want to establish exclusive negotiations for a specific period
2. Cost Allocation: Include when there's a need to specify how costs during the negotiation period will be handled
3. Break Fee: Used in larger transactions where compensation for withdrawal needs to be addressed
4. Governing Law Statement: Include when dealing with international parties to explicitly state Belgian law applies
5. Due Diligence Process: Include when the transaction will require significant due diligence investigation
6. Regulatory Requirements: Used when the proposed transaction may require regulatory approvals
1. Term Sheet: Detailed outline of the key commercial terms being proposed
2. Timeline Schedule: Detailed timeline of key milestones and deadlines
3. Asset List: When the transaction involves specific assets or properties
4. Price Structure: Detailed breakdown of proposed pricing or payment terms
5. Key Personnel: List of key contacts and their roles in the proposed transaction
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Relevant Teams
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Corporate Secretary
Business Unit Head
Partnership Manager
Project Director
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