Before signing a definitive merger or acquisition agreement, the parties will likely enter into several first-step agreements. These agreements lay the groundwork for the transaction and establish the terms and conditions for further negotiation and due diligence.

I. Nondisclosure Agreement

Imagine that Slice Magic, a popular pizza chain, was considering acquiring Tomato Fusion, a tomato-sauce company. To evaluate the potential acquisition, Slice Magic requested certain information and...