Home Business Documents Letter of Intent. A Letter of Intent is a written document that outlines a preliminary agreement between two parties regarding the terms of a potential purchase or other transaction.
Think of it as a road map as to how the negotiation and deal will proceed. The two parties can settle on certain terms while agreeing to continue to negotiate the other terms and details of the transaction before actually signing a purchase agreement.
Describe in detail what is being purchased, including any agreements on what will be included or excluded in the transaction the parties will be negotiating. Include any terms that have been agreed upon, such as purchase price or price adjustments. If the seller has agreed to exclusivity i. The parties can include certain conditions that must occur before a final agreement will be signed, such as:.
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Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These types of letters can be used in a variety of situations including business negotiations , to signal the intent to purchase real estate or by recipients of scholarships or college admissions to indicate the intent to accept a formal offer.
In business, a letter of intent is commonly used as an initial proposal to the other party. These proposals may include purchases, acquisitions, contracts and mergers. While not binding, a letter of intent can help clarify the points of a deal or provide protection should a deal collapse. Whatever may be your case, you can use our free Letter of Intent Template as a guide. Continue reading below, where you will find two different sample letters of intent as well as additional tips and resources.
Simplify the process of writing a letter of intent by starting with this template. It outlines the different sections and topics that should be included in your letter. We hereby submit a letter of intent to purchase your business Rain Gutters R Us, its inventory and other assets.
We envisage that the principal terms of the proposed transactions would be substantially as follows. We would acquire Rain Gutters R Us including its facilities located at Anywhere Street, its logo, brand, brand equity and customer lists. Furthermore, we would acquire all office and field equipment and inventory.
As part of this letter of intent, we would require that you cease shopping for other buyers for a period no less than 60 days to provide us time to complete due diligence and finalize the agreement.
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