Letter of Intent (LOI): Templates, Samples & Writing Tips
Letter of Intent (LOI) is a document outlining an agreement between two or more parties. Before entering legally binding agreements, an LOI signifies serious intent. Use it when exploring potential deals.
LOIs aren’t always legally binding, but some parts are. They protect confidential information or set exclusivity periods. Understanding the legal implications is very important.
This article provides sample LOIs and writing tips. These samples cover various scenarios, from business acquisitions to job offers and real estate deals. We offer insight for a strong LOI.
Remember: Consult legal counsel when drafting an LOI. Professional advice helps to ensure the LOI protects your interests and aligns with applicable laws. Don’t skip this vital step.
Sample Letter of Intent (LOI)
Here is a sample Letter of Intent. Please remember to tailor it to your specific situation.
[Date]
[Recipient Name]
[Recipient Title]
[Company Name]
[Address]
Dear [Recipient Name],
This letter constitutes our expression of intent to [briefly describe the purpose of the LOI, e.g., acquire your company, enter a joint venture]. We are genuinely interested in [mention the specific item or aspect of interest]. The key terms we are proposing are as follows:
* [Term 1, e.g., Purchase Price: $X]
* [Term 2, e.g., Closing Date: [Date]]
* [Term 3, e.g., Due Diligence Period: [Number] days]
This letter is non-binding, except for paragraphs regarding confidentiality and exclusivity. We propose a [Number] day exclusivity period to complete due diligence. We look forward to discussing this further and working towards a definitive agreement.
Sincerely,
[Your Name]
[Your Title]
[Your Company]
In conclusion, a Letter of Intent is a useful first step in many negotiations. Using the right strategy and sample, it can help to set clear expectations and boundaries for both parties. Ensure you seek legal advice before signing anything.
