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• W1797506771 abstract "In a contract negotiation a variety of negotiation documents are created. The parties may sign confidentiality agreements, letters of intent, shareholder agreements, employment agreements and transfer agreements – to name a few. During negotiations, many offers and proposals regarding the final transfer agreement are exchanged between the parties.A letter of intent brings order and clarity in a contract negotiation by clarifying the intentions of the parties and by compiling the most important agreements the parties have reached so far during the negotiations. A letter of intent is established before the final agreement and is commonly used in commercial contract negotiations. The design of the document can vary substantially. A letter of intent should however always state the negotiating parties' intentions to negotiate in order to reach a final agreement, any further content is based on the parties' demands and needs.Typically, a letter of intent holds a few regulations governing the continued contract negotiations. Recurring clauses include an exclusivity clause and a confidentiality clause. An exclusivity clause means that the seller commits, for some time, not to negotiate with any other party regarding the same thing. A confidentiality clause prevents the buyer from passing on confidential information provided during negotiations. When acquiring a business it is also common that the buyer wants to ensure the possibility to conduct a due diligence of the target company and this can be ensured by a letter of intent.The legal effect of a letter of intent is disputed. The general rule is that a letter of intent in principle is not binding as a contract, but under certain circumstances contractuality may still occur. However, if the parties have stated that they did not intend to be bound by a letter of intent there is no ambiguity as to any contractual rights and obligations. The negotiating parties are also able to establish so-called “unclean” letters of intent in which some clauses are legally binding in an otherwise unbinding document.Sometime during the contract negotiations a duty of good faith are created between the parties. The parties must then take into account the other party's interests. A letter of intent both activates and clarifies the duty of loyalty. If a party act improperly he may be charged for the other party's damages due to culpa in contrahendo. When an action is a tort may be determined based on if the injurious can be blamed for their actions and if the injured party was entitled to rely on the injurious.For the parties, a letter of intent is also a moral obligation. Regardless if the parties are legally bound by a letter of intent or not they will beware from acting in breach of the terms of the document. This is due to the fact that the parties' reputation can be damaged if they are acting without cause in breach of a letter of intents rules – with financial harm as a result." @default.
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• W1797506771 date "2013-01-01" @default.
• W1797506771 modified "2023-09-26" @default.
• W1797506771 title "Letters of intent – ur praktisk synvinkel" @default.
• W1797506771 hasPublicationYear "2013" @default.
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