Document background
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.
