A business Letter of Intent (LOI) is a crucial document in the early stages of a potential deal. It outlines the key terms of an agreement and signals a serious intent to proceed. While not always legally binding in its entirety, it sets the foundation for future negotiations and a definitive agreement. A well-crafted LOI can save time and resources by ensuring both parties are aligned on the core aspects of the transaction.
When drafting an LOI, clarity and precision are paramount. Specificity regarding price, payment terms, due diligence requirements, and exclusivity periods are essential. Consulting with legal counsel before signing is highly recommended to ensure the LOI accurately reflects your intentions and protects your interests. Remember that even non-binding clauses can have implications, impacting future negotiations and the overall tone of the deal.
Below are 11 sample business letter of intent templates covering various scenarios. These examples provide a starting point and should be customized to fit the specific circumstances of your deal. Carefully review each sample and adapt it to your unique needs, remembering to seek professional legal advice.
11 Business Letter of Intent (LOI) Samples
Note: These are sample letters and should be reviewed and customized by legal counsel.
Sample 1: LOI for Asset Purchase
[Your Company Letterhead]
[Date]
[Buyer Company Name]
[Buyer Company Address]
RE: Letter of Intent for Asset Purchase
Dear [Contact Person],
This letter constitutes a non-binding letter of intent outlining the terms and conditions under which [Your Company] (“Seller”) would sell certain assets to [Buyer Company] (“Buyer”).
Sample 2: LOI for Business Acquisition
[Your Company Letterhead]
[Date]
[Target Company Name]
[Target Company Address]
RE: Letter of Intent for Acquisition of [Target Company Name]
Dear [Contact Person],
This letter serves as a non-binding expression of interest by [Your Company] (“Buyer”) to acquire [Target Company Name] (“Target”).
Sample 3: LOI for Real Estate Purchase
[Your Name/Company Name]
[Your Address]
[Date]
[Seller Name/Company Name]
[Seller Address]
RE: Letter of Intent to Purchase Real Estate
Dear [Contact Person],
This letter constitutes a non-binding letter of intent under which [Your Name/Company Name] (“Buyer”) would purchase the property located at [Property Address] from [Seller Name/Company Name] (“Seller”).
Sample 4: LOI for Partnership
[Your Company Letterhead]
[Date]
[Partner Company Name]
[Partner Company Address]
RE: Letter of Intent Regarding Partnership
Dear [Contact Person],
This letter outlines the proposed terms of a partnership between [Your Company] and [Partner Company Name].
Sample 5: LOI for Joint Venture
[Your Company Letterhead]
[Date]
[Joint Venture Partner Company Name]
[Joint Venture Partner Company Address]
RE: Letter of Intent for Joint Venture
Dear [Contact Person],
This letter confirms the intent of [Your Company] and [Joint Venture Partner Company Name] to form a joint venture for [Purpose of Joint Venture].
Sample 6: LOI for Services Agreement
[Your Company Letterhead]
[Date]
[Client Company Name]
[Client Company Address]
RE: Letter of Intent for Services Agreement
Dear [Contact Person],
This letter expresses the intent of [Your Company] to provide [Description of Services] to [Client Company Name] under the terms outlined below.
Sample 7: LOI for Distribution Agreement
[Your Company Letterhead]
[Date]
[Distributor Company Name]
[Distributor Company Address]
RE: Letter of Intent for Distribution Agreement
Dear [Contact Person],
This letter outlines the intent of [Your Company] to grant [Distributor Company Name] the right to distribute [Products] in [Territory].
Sample 8: LOI for Licensing Agreement
[Your Company Letterhead]
[Date]
[Licensee Company Name]
[Licensee Company Address]
RE: Letter of Intent for Licensing Agreement
Dear [Contact Person],
This letter outlines the intent of [Your Company] to grant [Licensee Company Name] a license to use [Intellectual Property].
Sample 9: LOI for Funding/Investment
[Your Company Letterhead]
[Date]
[Investor Name/Company Name]
[Investor Address]
RE: Letter of Intent for Investment
Dear [Contact Person],
This letter expresses the intent of [Investor Name/Company Name] to invest in [Your Company] under the terms outlined below.
Sample 10: LOI for Lease Agreement
[Your Name/Company Name]
[Your Address]
[Date]
[Landlord Name/Company Name]
[Landlord Address]
RE: Letter of Intent to Lease Property
Dear [Contact Person],
This letter constitutes a non-binding letter of intent under which [Your Name/Company Name] (“Tenant”) would lease the property located at [Property Address] from [Landlord Name/Company Name] (“Landlord”).
Sample 11: LOI for Supply Agreement
[Your Company Letterhead]
[Date]
[Supplier Company Name]
[Supplier Company Address]
RE: Letter of Intent for Supply Agreement
Dear [Contact Person],
This letter outlines the intent of [Your Company] to purchase [Goods] from [Supplier Company Name] under the terms outlined below.
A well-drafted Letter of Intent is a valuable tool in setting the stage for successful business transactions. While these samples provide a helpful starting point, remember to tailor each LOI to your specific situation and always seek legal counsel to ensure your interests are protected. Clear communication and a thorough understanding of the key terms are essential for a smooth and beneficial outcome.
