Document background
A Letter Of Intent Asset Purchase Agreement is a crucial preliminary document used in German business transactions when a potential buyer wishes to formally express their serious intention to purchase specific business assets. This document serves multiple purposes: it outlines the fundamental terms of the proposed transaction, establishes the framework for due diligence and negotiations, and typically includes both binding provisions (such as confidentiality and exclusivity) and non-binding elements (like purchase price and general terms). Under German law, particular attention must be paid to clearly distinguishing between binding and non-binding provisions, as German courts may be more inclined to find binding obligations in preliminary documents compared to other jurisdictions. The document is typically used before committing significant resources to due diligence and detailed negotiations, providing a structured approach to complex asset purchase transactions while maintaining flexibility for both parties.
