A preliminary agreement is a legally binding document that outlines the terms and conditions of a proposed business transaction. It sets out the key elements of the transaction, such as the price, delivery date, and other important details.

In English, a preliminary agreement is typically referred to as a “letter of intent” or “memorandum of understanding.” It is a common practice for businesses to use these documents to negotiate the terms of a transaction before entering into a formal contract.

The purpose of a preliminary agreement is to establish a framework for the transaction and to ensure that both parties are on the same page. It can be seen as a way to test the waters and see if both parties are interested in moving forward with the deal.

When drafting a preliminary agreement, it is important to be clear and specific about the terms of the transaction. The document should include details such as the scope of the agreement, the timeline for completion, and any contingencies or conditions that must be met before the deal can be finalized.

It is also common for a preliminary agreement to include confidentiality and non-disclosure clauses to protect both parties` interests. This is especially important in cases where sensitive or proprietary information may be shared during the negotiation process.

In conclusion, a preliminary agreement is an important step in any business transaction, as it helps to establish the terms and conditions of the deal and ensures that both parties are on the same page. By being clear and specific about the details of the transaction, businesses can streamline the negotiation process and increase the likelihood of a successful outcome.