Document background
The Limited Partnership Term Sheet is a crucial preliminary document used in the Netherlands when parties intend to establish a Commanditaire Vennootschap (CV). It serves as a roadmap for the final partnership agreement and is typically used in investment structures, real estate ventures, and professional service arrangements. The document outlines essential terms including partnership structure, capital commitments, management rights, profit sharing, and transfer restrictions. While not legally binding in its entirety, it represents the parties' serious intention to form a partnership and often includes certain binding provisions such as confidentiality and exclusivity. The term sheet must align with Dutch partnership law requirements and consider tax implications under Dutch legislation. It's particularly important in scenarios involving international investors or complex investment structures where clarity on key terms is essential before proceeding with detailed documentation.
