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Letter Of Intent To Sell Products for Germany

Letter Of Intent To Sell Products Template for Germany

A Letter of Intent to Sell Products under German law is a preliminary document that outlines the proposed terms and conditions for a product sales arrangement between two parties. This document, governed by German commercial law (Handelsgesetzbuch - HGB) and civil law (Bürgerliches Gesetzbuch - BGB), serves as a framework for future negotiations while typically remaining non-binding except for specific provisions such as confidentiality and exclusivity. It includes key commercial terms, product specifications, proposed pricing structures, and timeline for definitive agreement execution, while incorporating German legal requirements for pre-contractual obligations (culpa in contrahendo) and principles of good faith (Treu und Glauben).

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What is a Letter Of Intent To Sell Products?

A Letter of Intent to Sell Products is commonly used in German business practice as a preliminary step before entering into a definitive sales agreement. It is particularly useful when parties need to document their initial understanding and commitment to negotiate while maintaining flexibility before final terms are agreed upon. This document type is essential in complex product sales scenarios where detailed due diligence, regulatory compliance checks, or extensive negotiations may be required. Under German law, while generally non-binding in nature, certain provisions such as confidentiality and exclusivity can be explicitly made binding, and the document must respect principles of pre-contractual good faith (Treu und Glauben). The LOI typically outlines proposed commercial terms, product specifications, pricing frameworks, and timelines, serving as a roadmap for subsequent negotiations while protecting both parties' interests during the preliminary phase.

What sections should be included in a Letter Of Intent To Sell Products?

1. Opening and Date: Formal business letter opening with date and addressee details

2. Party Identification: Clear identification of both parties, including full legal names and addresses

3. Statement of Intent: Clear declaration of the preliminary nature of the letter and its purpose regarding product sales

4. Product Description: Brief description of the products to be sold

5. Basic Commercial Terms: Outline of key commercial terms including proposed pricing, volumes, and delivery terms

6. Timeline: Proposed timeline for negotiation and execution of definitive agreements

7. Exclusivity Period: Duration during which parties will negotiate exclusively with each other

8. Confidentiality: Basic confidentiality obligations regarding the negotiations and shared information

9. Non-Binding Nature: Clear statement about which provisions are non-binding vs. binding

10. Closing and Signatures: Formal closing, signature blocks, and company details

What sections are optional to include in a Letter Of Intent To Sell Products?

1. Due Diligence Process: Include when detailed product investigation or company verification is needed before final agreement

2. Regulatory Compliance: Include when specific regulatory approvals or compliance measures are necessary for the product sales

3. Cost Allocation: Include when parties need to specify who bears the costs of negotiations and due diligence

4. Break Fee: Include when parties want to specify compensation if one party withdraws from negotiations

5. Governing Law and Jurisdiction: Include when parties want to specify applicable law for binding provisions

What schedules should be included in a Letter Of Intent To Sell Products?

1. Product Specification Sheet: Technical specifications and details of the products to be sold

2. Preliminary Price List: Indicative pricing structure and terms

3. Proposed Timeline: Detailed timeline for negotiations and implementation

4. Due Diligence Checklist: List of required documents and information for review

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Germany

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions

























Clauses




















Relevant Industries

Manufacturing

Retail

Consumer Goods

Industrial Products

Technology

Automotive

Chemical

Pharmaceutical

Food and Beverage

Electronics

Machinery

Textiles

Construction Materials

Medical Devices

Relevant Teams

Legal

Sales

Procurement

Business Development

Commercial Operations

Supply Chain

International Trade

Product Management

Compliance

Finance

Relevant Roles

Chief Executive Officer

Commercial Director

Sales Director

Procurement Manager

Business Development Manager

Legal Counsel

Contract Manager

Supply Chain Manager

Export Manager

Product Manager

Commercial Operations Manager

Head of Sales

Chief Commercial Officer

Purchasing Director

International Trade Manager

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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