Document background
A Letter of Intent to Buy is a crucial preliminary document used in various business transactions under Austrian law. It serves as a formal expression of interest from a potential buyer and outlines the fundamental terms of a proposed purchase transaction. This document is typically used when parties are serious about proceeding with a transaction but need to establish a framework for further negotiations and due diligence. While primarily non-binding, except for specifically designated clauses (such as confidentiality and exclusivity), it demonstrates commitment and sets expectations for both parties. The document is particularly relevant in Austrian business practice where formal documentation of preliminary agreements is valued, and it helps structure negotiations while providing a foundation for the eventual definitive agreement. Letters of Intent to Buy are commonly used in various contexts, from real estate transactions to business acquisitions, and must comply with Austrian civil and commercial law requirements.
