The Letter of Intent for Sponsorship is commonly used in Austrian business practice as a preliminary step before entering into a formal sponsorship agreement. This document is particularly valuable when parties need to articulate their intentions and basic understanding while still negotiating detailed terms. It typically includes proposed financial terms, duration, basic rights and obligations, and any specific conditions that need to be met before proceeding with a formal agreement. Under Austrian law, while generally non-binding, certain provisions like confidentiality clauses can be explicitly made binding. The document helps parties align their expectations and serves as a roadmap for further negotiations, while considering Austrian legal requirements regarding contract formation, advertising regulations, and tax implications. It's especially useful for complex sponsorship arrangements where detailed due diligence or board approvals may be required before finalizing the formal agreement.
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1. Letterhead and Date: Official letterhead of the sponsoring organization and current date
2. Recipient Details: Full name and address of the recipient (sponsored party)
3. Subject Line: Clear indication that this is a Letter of Intent for Sponsorship
4. Introduction: Identification of both parties and brief background of the sponsoring organization
5. Purpose: Clear statement of intention to enter into a sponsorship arrangement
6. Proposed Sponsorship Scope: Overview of the proposed sponsorship including nature, duration, and general terms
7. Basic Terms: Outline of fundamental sponsorship terms including proposed financial or in-kind support
8. Timeline: Proposed timeline for finalizing the formal sponsorship agreement
9. Non-Binding Nature: Statement clarifying the non-binding nature of the letter (except for any specifically binding terms)
10. Contact Details: Name and contact information of the responsible person for further discussions
11. Closing: Formal closing, signature block, and title of signing authority
1. Confidentiality: Include when discussing sensitive information or trade secrets that need protection
2. Exclusivity Period: Add when requesting exclusive negotiation rights for a specified period
3. Key Milestones: Include when the sponsorship is tied to specific events or achievements
4. Regulatory Compliance: Add when sponsorship involves regulated industries or activities
5. Intellectual Property: Include when the sponsorship involves use of logos, trademarks, or other IP
6. Due Diligence: Add when specific due diligence requirements need to be outlined
7. Conditions Precedent: Include when certain conditions must be met before proceeding with formal agreement
1. Proposed Budget Overview: High-level breakdown of proposed sponsorship value and allocation
2. Draft Timeline: Detailed timeline of proposed sponsorship activities and milestones
3. Preliminary Marketing Rights: Overview of proposed marketing and promotional rights
4. Sponsor Benefits Summary: List of proposed benefits and exposure opportunities for the sponsor
5. Technical Requirements: Any technical or operational requirements for the sponsorship
6. Due Diligence Checklist: List of required documents and information for due diligence
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