Document background
The Contractual Letter of Intent is a fundamental document in Austrian business practice, commonly used when parties are preparing to enter into significant commercial transactions or business relationships. It serves as a roadmap for negotiations while potentially creating certain binding obligations between the parties. Under Austrian law, particularly the ABGB and UGB, this document holds special significance as it can create pre-contractual obligations and duties of good faith negotiation. The Contractual Letter of Intent typically outlines key commercial terms, timelines, and conditions for the proposed transaction, while clearly delineating which provisions are binding and which are subject to further negotiation. It's particularly valuable in complex transactions where parties need to document their preliminary understanding and establish a framework for due diligence and detailed negotiations, while maintaining legal certainty under Austrian jurisdiction.
