Understanding the Power of a Letter of Intent
A Letter of Intent (LOI) is a crucial document in many business and personal transactions. It serves as a preliminary agreement, outlining the key terms and conditions that the involved parties intend to agree upon in a final, more comprehensive contract. While not always legally binding in its entirety, an LOI demonstrates a serious commitment and lays the groundwork for successful negotiations. A well-crafted LOI can save time and resources by clarifying expectations upfront and preventing misunderstandings later on.
Choosing the right LOI template depends on the specific situation. From business acquisitions and real estate purchases to job offers and grant proposals, the content and focus will vary significantly. This guide provides 20 diverse examples to help you understand the nuances of writing effective letters of intent across different scenarios, covering key elements like due diligence, confidentiality, exclusivity, and termination clauses.
20 Sample Letters of Intent: Diverse Scenarios
Below are 20 sample letters of intent, covering a range of common situations. Each sample provides a template you can adapt to your specific needs. Remember to consult with legal counsel to ensure your LOI is appropriate for your specific circumstances and complies with applicable laws.
1. Letter of Intent for Business Acquisition
[Date]
[Buyer’s Name]
[Buyer’s Address]
[Seller’s Name]
[Seller’s Address]
Re: Letter of Intent for the Acquisition of [Company Name]
Dear [Seller’s Name],
This letter expresses our intent to acquire [Company Name] subject to due diligence and final agreement.
Key Terms:
Purchase Price: $[Amount]
Due Diligence Period: [Number] days
Closing Date: [Date]
Sincerely,
[Buyer’s Name]
2. Letter of Intent for Real Estate Purchase
[Date]
[Buyer’s Name]
[Buyer’s Address]
[Seller’s Name]
[Seller’s Address]
Re: Letter of Intent to Purchase Real Property
Dear [Seller’s Name],
This letter expresses our intent to purchase the property located at [Property Address].
Purchase Price: $[Amount]
Closing Date: [Date]
Sincerely,
[Buyer’s Name]
3. Letter of Intent for Employment
[Date]
[Company Name]
[Company Address]
[Candidate’s Name]
[Candidate’s Address]
Re: Offer of Employment
Dear [Candidate’s Name],
We are pleased to offer you the position of [Job Title] with a start date of [Date].
Salary: $[Amount] per year
Benefits: [List of Benefits]
Sincerely,
[Hiring Manager Name]
4. Letter of Intent for Lease Agreement
[Date]
[Tenant’s Name]
[Tenant’s Address]
[Landlord’s Name]
[Landlord’s Address]
Re: Letter of Intent for Lease of Property at [Property Address]
Dear [Landlord’s Name],
This letter outlines our intent to lease the property located at [Property Address] under the following terms:
Rental Amount: $[Amount] per month
Lease Term: [Number] years
Sincerely,
[Tenant’s Name]
5. Letter of Intent for Joint Venture
[Date]
[Party 1 Name]
[Party 1 Address]
[Party 2 Name]
[Party 2 Address]
Re: Letter of Intent for Joint Venture
Dear [Party 2 Name],
This letter expresses our intent to form a joint venture for the purpose of [Purpose].
Contributions: [Details of contributions from each party]
Profit Sharing: [Percentage split]
Sincerely,
[Party 1 Name]
6. Letter of Intent for Service Agreement
[Date]
[Client Name]
[Client Address]
[Service Provider Name]
[Service Provider Address]
Re: Letter of Intent for Service Agreement
Dear [Client Name],
This letter outlines our intention to provide [Service Description] to your organization.
Service Fee: $[Amount]
Term of Agreement: [Number] months
Sincerely,
[Service Provider Name]
7. Letter of Intent for Consulting Services
[Date]
[Client Name]
[Client Address]
[Consultant Name]
[Consultant Address]
Re: Letter of Intent for Consulting Services
Dear [Client Name],
This letter outlines our intention to provide consulting services related to [Consulting Area].
Consulting Fee: $[Amount] per hour
Project Duration: [Estimated time frame]
Sincerely,
[Consultant Name]
8. Letter of Intent for Investment
[Date]
[Investor Name]
[Investor Address]
[Company Name]
[Company Address]
Re: Letter of Intent for Investment
Dear [Company Name],
This letter expresses our interest in investing $[Amount] in your company.
Equity Stake: [Percentage]
Valuation: $[Company Valuation]
Sincerely,
[Investor Name]
9. Letter of Intent for Partnership
[Date]
[Partner 1 Name]
[Partner 1 Address]
[Partner 2 Name]
[Partner 2 Address]
Re: Letter of Intent for Partnership
Dear [Partner 2 Name],
This letter outlines our intention to form a partnership for [Business Purpose].
Contributions: [Description of each partner’s contributions]
Profit/Loss Sharing: [Agreed upon percentages]
Sincerely,
[Partner 1 Name]
10. Letter of Intent for Software Development
[Date]
[Client Name]
[Client Address]
[Developer Name]
[Developer Address]
Re: Letter of Intent for Software Development
Dear [Client Name],
This letter outlines our intent to develop software for you, including [Software Description].
Development Cost: $[Amount]
Timeline: [Project Timeline]
Sincerely,
[Developer Name]
11. Letter of Intent for Product Supply Agreement
[Date]
[Buyer Name]
[Buyer Address]
[Supplier Name]
[Supplier Address]
Re: Letter of Intent for Product Supply Agreement
Dear [Supplier Name],
This letter expresses our intent to purchase [Product Name] from your company under the following conditions:
Quantity: [Number] units
Price: $[Amount] per unit
Sincerely,
[Buyer Name]
12. Letter of Intent for Technology License
[Date]
[Licensee Name]
[Licensee Address]
[Licensor Name]
[Licensor Address]
Re: Letter of Intent for Technology License Agreement
Dear [Licensor Name],
This letter outlines our intention to obtain a license to use your technology, specifically [Technology Name].
License Fee: $[Amount]
Territory: [Geographic Area]
Sincerely,
[Licensee Name]
13. Letter of Intent for Franchise Agreement
[Date]
[Franchisee Name]
[Franchisee Address]
[Franchisor Name]
[Franchisor Address]
Re: Letter of Intent for Franchise Agreement
Dear [Franchisor Name],
This letter expresses our interest in acquiring a franchise for [Franchise Name] at [Location].
Initial Franchise Fee: $[Amount]
Royalty Fee: [Percentage]% of gross sales
Sincerely,
[Franchisee Name]
14. Letter of Intent for Artwork Purchase
[Date]
[Buyer Name]
[Buyer Address]
[Seller Name]
[Seller Address]
Re: Letter of Intent to Purchase Artwork
Dear [Seller Name],
This letter confirms our intent to purchase the artwork titled “[Artwork Title]” by [Artist Name].
Purchase Price: $[Amount]
Payment Terms: [Payment Schedule]
Sincerely,
[Buyer Name]
15. Letter of Intent for Grant Proposal
[Date]
[Organization Name]
[Organization Address]
[Funding Agency Name]
[Funding Agency Address]
Re: Letter of Intent for Grant Proposal – [Project Name]
Dear [Funding Agency Name],
This letter outlines our intent to submit a grant proposal for the [Project Name] project, which aims to [Project Goal].
Amount Requested: $[Amount]
Project Duration: [Number] months
Sincerely,
[Organization Name]
16. Letter of Intent for Distribution Agreement
[Date]
[Distributor Name]
[Distributor Address]
[Manufacturer Name]
[Manufacturer Address]
Re: Letter of Intent for Distribution Agreement
Dear [Manufacturer Name],
This letter expresses our interest in becoming a distributor for your product, [Product Name], within [Territory].
Distribution Rights: [Exclusive/Non-exclusive]
Minimum Purchase Quantity: [Number] units per [Time Period]
Sincerely,
[Distributor Name]
17. Letter of Intent for Asset Purchase Agreement
[Date]
[Buyer Name]
[Buyer Address]
[Seller Name]
[Seller Address]
Re: Letter of Intent for Asset Purchase Agreement
Dear [Seller Name],
This letter outlines our intention to purchase specific assets from your company, including [List of Assets].
Purchase Price: $[Amount]
Due Diligence: [Duration of due diligence period]
Sincerely,
[Buyer Name]
18. Letter of Intent for Mergers and Acquisitions
[Date]
[Acquiring Company Name]
[Acquiring Company Address]
[Target Company Name]
[Target Company Address]
Re: Letter of Intent for Mergers and Acquisitions
Dear [Target Company Name],
This letter outlines our intention to merge with or acquire your company, under the following terms:
Valuation: $[Amount]
Method of Payment: [Cash/Stock/Combination]
Sincerely,
[Acquiring Company Name]
19. Letter of Intent for Confidentiality Agreement (NDA)
[Date]
[Disclosing Party Name]
[Disclosing Party Address]
[Receiving Party Name]
[Receiving Party Address]
Re: Letter of Intent for Confidentiality Agreement (NDA)
Dear [Receiving Party Name],
This letter states our intention to share confidential information with you under the following conditions:
Definition of Confidential Information: [Detailed description]
Permitted Use: [How the receiving party is allowed to use the information]
Sincerely,
[Disclosing Party Name]
20. Letter of Intent for Memorandum of Understanding (MOU)
[Date]
[Party A Name]
[Party A Address]
[Party B Name]
[Party B Address]
Re: Letter of Intent for Memorandum of Understanding (MOU)
Dear [Party B Name],
This letter outlines our intention to create a Memorandum of Understanding (MOU) for [Project Name or Goal]:
Collaborative Areas: [Areas of agreement and collaboration]
Responsibilities: [Outline of each party’s responsibilities]
Sincerely,
[Party A Name]
Conclusion: Crafting Your Perfect Letter of Intent
A Letter of Intent is a powerful tool for initiating discussions and establishing a framework for future agreements. By understanding the different types of LOIs and carefully tailoring each one to your specific situation, you can significantly increase your chances of success in any negotiation. Remember to always seek legal counsel to ensure your LOI protects your interests and complies with all applicable regulations. Use these samples as a starting point, and adapt them to reflect your unique needs and goals.