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The Cover Letter of Intent is a crucial preliminary document in Austrian business practice, used to formally initiate significant business transactions or relationships. It serves as a stepping stone between initial discussions and final binding agreements, outlining key terms and conditions while maintaining flexibility for further negotiations. Under Austrian law, particularly the ABGB (Austrian Civil Code), while generally non-binding, certain provisions can be explicitly made binding, such as confidentiality obligations or exclusivity periods. The document is commonly used in mergers and acquisitions, joint ventures, real estate transactions, and other significant business arrangements where parties need to formally express their intentions before proceeding with detailed due diligence or final agreements. It helps establish clear communication, demonstrate serious intent, and provide a structured framework for moving forward with negotiations.

1. Sender Details: Full name, title, company name, and complete address of the sender

2. Date: Current date formatted according to Austrian business standards (DD.MM.YYYY)

3. Recipient Details: Full name, title, company name, and complete address of the recipient

4. Subject Line: Clear indication that this is a Letter of Intent and the specific matter it concerns

5. Salutation: Formal greeting according to Austrian business etiquette

6. Introduction: Brief introduction identifying the parties and the general purpose of the letter

7. Transaction Overview: Concise description of the proposed transaction or relationship

8. Key Terms: Outline of the principal terms and conditions being proposed

9. Non-Binding Statement: Clear statement that this is a non-binding expression of intent (except for any specifically binding provisions)

10. Next Steps: Proposed timeline and process for moving forward

11. Closing: Professional closing statement with contact information

12. Signature Block: Space for signature, printed name, and title of the sender