Letter of intent

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  • The letter of intent: understanding this key commitment in business law

    By Yasmine EDDAM
    23 April 2025
    The letter of intent is a mechanism frequently encountered in the business world, particularly within groups of companies. However, its precise legal nature and the real scope of the commitment it represents are often misunderstood. Is it simply a moral declaration or a truly binding obligation? The purpose of this article is to demystify the letter of intent in French law, and to set out its characteristics, legal value and practical consequences for companies that use it or benefit from it. A good understanding of this tool is essential for securing your commercial and financial relations. Article 2322 of the French Civil Code defines it concisely as "an undertaking to do or not to do, the purpose of which is to support a debtor in the performance of his obligation to his creditor". What exactly is a letter of intent? Definition and context of use In the...
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