Document background
The Letter Of Intent Commercial (Real Estate) is a crucial preliminary document used in Dutch commercial property transactions to establish the framework for negotiations between parties. It serves as a stepping stone toward a definitive agreement, typically used when parties have reached preliminary understanding on key commercial terms but need to conduct due diligence and finalize details. Under Dutch law, while LOIs are generally non-binding, certain provisions (such as confidentiality and exclusivity) can create binding obligations. The document reflects Dutch legal principles, particularly the doctrine of good faith in negotiations (redelijkheid en billijkheid), and typically includes property details, commercial terms, due diligence scope, and timeline for completing the transaction. It's particularly important in complex commercial real estate transactions where significant due diligence is required before reaching a final agreement.
