Chapter 3. Preliminary negotiations
There is usually a long run into an acquisition during which the two sides make some ‘preliminary agreements’. Most will be agreements on how the parties will behave during the negotiations but some will make it into the final sale and purchase agreement. Most will not be binding, but some will be. You do not want to find yourself unwittingly bound by a preliminary agreement which you had assumed was not binding; this is why you should involve your lawyers although they can often make what might seem like an unnecessary fuss.
The most common pre-contractual documents are the confidentiality agreement and the letter of intent and it is these that we will examine in this chapter.
The confidentiality agreement
The ...
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