A Letter of Intent (LOI) is a crucial document in various business and personal scenarios. It’s a preliminary agreement outlining the key terms of a potential deal, partnership, or opportunity. Think of it as a roadmap that helps guide negotiations and ensures everyone is on the same page before committing to a legally binding contract. Understanding how to write a compelling and effective Letter of Intent is an invaluable skill.
This article will delve into the intricacies of crafting a strong LOI, providing you with 17 diverse examples spanning various industries and situations. From business acquisitions and real estate transactions to job applications and academic pursuits, we’ll explore the essential elements of a well-structured Letter of Intent and equip you with the knowledge to create your own impactful documents. We will also explain the specific contexts in which each sample would be most useful.
What is a Letter of Intent (LOI)?
A Letter of Intent (LOI) is a document outlining the understanding between two or more parties which they intend to formalize in a legally binding agreement. While the LOI itself is usually non-binding (except for specific clauses like confidentiality or exclusivity), it sets the stage for the final contract and helps to avoid misunderstandings later on. It serves as a preliminary agreement, demonstrating a serious intent to proceed with a deal or arrangement.
Key Components of a Letter of Intent
While the specific content of an LOI will vary depending on the situation, certain key elements are typically included:
- Identification of Parties: Clearly state the names and addresses of all parties involved.
- Purpose of the Letter: Briefly describe the intent of the agreement.
- Key Terms and Conditions: Outline the most important terms, such as price, payment terms, deadlines, and scope of work.
- Due Diligence: Specify any due diligence that needs to be conducted.
- Exclusivity (Optional): Indicate whether the parties will negotiate exclusively with each other for a specified period.
- Confidentiality: Include a clause ensuring the confidentiality of sensitive information.
- Governing Law: State the jurisdiction whose laws will govern the agreement.
- Non-Binding Nature: Explicitly state that the LOI is non-binding, except for certain clauses.
- Expiration Date: Set a date after which the LOI will expire if a final agreement is not reached.
- Signatures: Include signature lines for all parties.
17 Letter of Intent Samples: Diverse Scenarios
Below are 17 diverse Letter of Intent samples. Each sample is tailored to a specific situation and includes key elements relevant to that context. Remember to adapt these templates to your specific needs and consult with legal counsel before signing any agreement.
1. Letter of Intent for Business Acquisition
This sample outlines the intent of one company to acquire another.
Date: October 26, 2023
To: [Name of Company Being Acquired]
From: [Name of Acquiring Company]
Subject: Letter of Intent for Acquisition of [Company Name]
Dear [Contact Person],
This letter constitutes a non-binding Letter of Intent whereby [Name of Acquiring Company] (“Acquirer”) expresses its interest in acquiring [Name of Company Being Acquired] (“Target”).
The proposed acquisition would involve the purchase of all outstanding shares of the Target for a price of $[Amount], subject to due diligence and negotiation of a definitive agreement.
Key Terms:
- Purchase Price: $[Amount]
- Payment Terms: [Describe Payment Terms]
- Due Diligence Period: [Number] days
- Closing Date: [Date]
This Letter of Intent is non-binding, except for the confidentiality provision below, and shall expire on [Date].
Sincerely,
[Name and Title of Signatory]
2. Letter of Intent for Real Estate Purchase
This sample is used when a buyer is interested in purchasing a property.
Date: October 26, 2023
To: [Seller’s Name]
From: [Buyer’s Name]
Subject: Letter of Intent to Purchase Real Estate Located at [Property Address]
Dear [Seller’s Name],
This letter constitutes a non-binding Letter of Intent whereby [Buyer’s Name] (“Buyer”) expresses its interest in purchasing the real estate located at [Property Address] (“Property”).
The proposed purchase price for the Property is $[Amount], subject to satisfactory inspections and appraisals.
Key Terms:
- Purchase Price: $[Amount]
- Deposit: $[Amount]
- Closing Date: [Date]
- Inspection Period: [Number] days
This Letter of Intent is non-binding, except for the confidentiality provision below, and shall expire on [Date].
Sincerely,
[Buyer’s Name]
3. Letter of Intent for Job Application (Internal Promotion)
This sample is for an employee seeking an internal promotion.
Date: October 26, 2023
To: [Hiring Manager Name]
From: [Your Name]
Subject: Letter of Intent – [Job Title] Application
Dear [Hiring Manager Name],
I am writing to express my strong interest in the [Job Title] position, as advertised on [Platform where you saw the advertisement]. I have been with [Company Name] for [Number] years as a [Your Current Role] and I am confident that my skills and experience align perfectly with the requirements of this role.
In my current role, I have consistently exceeded expectations in [List of Key Accomplishments]. I am particularly skilled in [List of Key Skills]. I am eager to contribute my expertise and dedication to the [Job Title] position and help the team achieve its goals.
I am available for an interview at your earliest convenience. Thank you for your time and consideration.
Sincerely,
[Your Name]
4. Letter of Intent for Partnership
This sample outlines the intent of two parties to form a business partnership.
Date: October 26, 2023
To: [Partner 1 Name]
From: [Partner 2 Name]
Subject: Letter of Intent for Partnership
Dear [Partner 1 Name],
This letter serves as a non-binding Letter of Intent expressing our mutual interest in forming a partnership to [Describe the purpose of the partnership].
Key Terms:
- Partnership Name: [Partnership Name]
- Contributions: [Describe each partner’s contributions]
- Profit Sharing: [Describe profit sharing arrangement]
- Responsibilities: [Outline responsibilities of each partner]
This Letter of Intent is non-binding and is intended to serve as a basis for further negotiation of a formal partnership agreement.
Sincerely,
[Partner 2 Name]
5. Letter of Intent for Lease Agreement
This sample is used to express interest in leasing a property.
Date: October 26, 2023
To: [Landlord’s Name]
From: [Tenant’s Name]
Subject: Letter of Intent to Lease Property at [Property Address]
Dear [Landlord’s Name],
This letter expresses my/our intent to lease the property located at [Property Address] under the following terms:
Key Terms:
- Property Address: [Property Address]
- Lease Term: [Duration of Lease]
- Monthly Rent: $[Amount]
- Use of Property: [Intended use of the property]
This Letter of Intent is non-binding and subject to a formal lease agreement.
Sincerely,
[Tenant’s Name]
6. Letter of Intent for Service Agreement
This sample outlines the intent to hire a service provider.
Date: October 26, 2023
To: [Service Provider’s Name]
From: [Client’s Name]
Subject: Letter of Intent for Service Agreement
Dear [Service Provider’s Name],
This letter expresses our intent to engage your services for [Description of services].
Key Terms:
- Scope of Services: [Detailed description of services]
- Payment Terms: $[Amount] per [Time period/Project]
- Term of Agreement: [Duration of agreement]
This Letter of Intent is non-binding and subject to a formal service agreement.
Sincerely,
[Client’s Name]
7. Letter of Intent for Investment
This sample is used to express interest in investing in a company.
Date: October 26, 2023
To: [Company’s Name]
From: [Investor’s Name]
Subject: Letter of Intent for Investment
Dear [Contact Person],
This letter expresses our intent to invest $[Amount] in [Company Name] in exchange for [Percentage]% equity.
Key Terms:
- Investment Amount: $[Amount]
- Equity Stake: [Percentage]%
- Valuation: $[Company Valuation]
This Letter of Intent is non-binding and subject to due diligence and negotiation of a formal investment agreement.
Sincerely,
[Investor’s Name]
8. Letter of Intent for Joint Venture
Date: October 26, 2023
To: [Company A Name]
From: [Company B Name]
Subject: Letter of Intent for Joint Venture
Dear [Contact Person at Company A],
This letter outlines our mutual interest in forming a joint venture to [Describe the purpose of the joint venture].
Key Terms:
- Joint Venture Name: [Proposed Name]
- Contributions: [Describe each company’s contributions]
- Profit Sharing: [Describe profit sharing]
This Letter of Intent is non-binding and subject to further negotiation of a formal joint venture agreement.
Sincerely,
[Name and Title of Signatory at Company B]
9. Letter of Intent for Supply Agreement
This sample outlines the intention to establish a supply relationship.
Date: October 26, 2023
To: [Supplier’s Name]
From: [Buyer’s Name]
Subject: Letter of Intent for Supply Agreement
Dear [Supplier’s Name],
This letter expresses our intent to purchase [Product/Service] from you under the following terms:
Key Terms:
- Product/Service: [Description of Product/Service]
- Quantity: [Quantity to be purchased]
- Price: $[Price] per [Unit]
This Letter of Intent is non-binding and subject to a formal supply agreement.
Sincerely,
[Buyer’s Name]
10. Letter of Intent for Franchise Agreement
This is used when someone wants to open a franchise.
Date: October 26, 2023
To: [Franchisor’s Name]
From: [Franchisee’s Name]
Subject: Letter of Intent for Franchise Agreement – [Franchise Location]
Dear [Contact Person],
I am writing to express my strong interest in becoming a franchisee of [Franchise Name] at [Proposed Location].
Key Terms:
- Franchise Location: [Proposed Location]
- Initial Franchise Fee: $[Amount]
- Ongoing Royalties: [Percentage]% of gross sales
This Letter of Intent is non-binding and subject to review and approval of the franchise disclosure document and negotiation of a formal franchise agreement.
Sincerely,
[Franchisee’s Name]
11. Letter of Intent for Software Development
This sample is used when hiring a developer.
Date: October 26, 2023
To: [Software Company’s Name]
From: [Client Company’s Name]
Subject: Letter of Intent for Software Development Project
Dear [Contact Person],
This letter expresses our intent to engage [Software Company Name] to develop a software application for [Brief description of the application].
Key Terms:
- Project Scope: [Brief description of the scope]
- Development Timeline: [Proposed timeline]
- Project Cost: $[Estimated Cost]
This Letter of Intent is non-binding and subject to a detailed project specification document and a formal software development agreement.
Sincerely,
[Name and Title of Signatory at Client Company]
12. Letter of Intent for Event Sponsorship
This sample expresses a company’s interest in sponsoring an event.
Date: October 26, 2023
To: [Event Organizer’s Name]
From: [Sponsor Company’s Name]
Subject: Letter of Intent for Sponsorship of [Event Name]
Dear [Event Organizer’s Name],
This letter expresses our interest in sponsoring the [Event Name] event scheduled for [Date].
Key Terms:
- Sponsorship Level: [Gold, Silver, Bronze, etc.]
- Sponsorship Fee: $[Amount]
- Benefits: [List of benefits, e.g., logo placement, speaking opportunity]
This Letter of Intent is non-binding and subject to a formal sponsorship agreement.
Sincerely,
[Name and Title of Signatory at Sponsor Company]
13. Letter of Intent for Research Collaboration
This sample outlines the intent for two organizations to collaborate on research.
Date: October 26, 2023
To: [Research Institution A Contact Person]
From: [Research Institution B Contact Person]
Subject: Letter of Intent for Research Collaboration on [Research Topic]
Dear [Contact Person],
This letter expresses our mutual interest in collaborating on research related to [Research Topic].
Key Terms:
- Research Topic: [Detailed description of the research]
- Responsibilities: [Outline the responsibilities of each institution]
- Intellectual Property: [Discuss ownership of intellectual property]
This Letter of Intent is non-binding and subject to a formal research collaboration agreement.
Sincerely,
[Name and Title of Signatory at Research Institution B]
14. Letter of Intent for Mentorship Program
This sample is used to express interest in being part of a mentorship program.
Date: October 26, 2023
To: [Mentorship Program Coordinator]
From: [Applicant Name]
Subject: Letter of Intent – Application for Mentorship Program
Dear [Coordinator’s Name],
I am writing to express my strong interest in participating in the [Mentorship Program Name] as a mentee. I am particularly interested in being mentored by someone with experience in [Specific Area of Interest].
I believe that my background in [Your Background] and my goals of [Your Goals] would make me a valuable participant in this program.
Thank you for considering my application.
Sincerely,
[Applicant Name]
15. Letter of Intent for Grant Application
This sample is used as a preliminary step to a full grant proposal.
Date: October 26, 2023
To: [Granting Organization]
From: [Applicant Organization]
Subject: Letter of Intent – Grant Application for [Project Name]
Dear [Contact Person at Granting Organization],
This letter serves as a Letter of Intent to submit a grant application for the [Project Name] project, which aims to [Briefly describe the project and its goals].
We believe that this project aligns well with your organization’s mission to [Mention alignment with the organization’s mission].
We plan to submit a full proposal by [Date].
Sincerely,
[Name and Title of Signatory at Applicant Organization]
16. Letter of Intent for Academic Admission
This sample expresses interest in attending a specific academic program.
Date: October 26, 2023
To: [Admissions Committee]
From: [Applicant Name]
Subject: Letter of Intent – Application for [Program Name]
Dear [Admissions Committee],
I am writing to express my strong interest in applying for the [Program Name] program at [University Name]. I am particularly drawn to [Mention specific aspects of the program that appeal to you].
My academic background in [Your Background] and my research interests in [Your Research Interests] align well with the program’s focus.
I plan to submit my full application by the deadline of [Date].
Sincerely,
[Applicant Name]
17. Letter of Intent for Volunteer Work
This sample expresses interest in volunteering at an organization.
Date: October 26, 2023
To: [Volunteer Coordinator’s Name]
From: [Applicant Name]
Subject: Letter of Intent – Volunteer Application
Dear [Coordinator’s Name],
I am writing to express my interest in volunteering at [Organization Name]. I am particularly interested in volunteering in [Specific Area of Interest].
I am available to volunteer [Number] hours per week and I am eager to contribute to your organization’s mission.
Thank you for considering my application.
Sincerely,
[Applicant Name]
Conclusion: Mastering the Art of the Letter of Intent
As demonstrated by the diverse samples presented, a well-crafted Letter of Intent is a powerful tool in a variety of situations. Whether you’re pursuing a major business deal, seeking a new job, or exploring a partnership opportunity, understanding the key components of an LOI and tailoring it to your specific needs can significantly increase your chances of success. Remember to always consult with legal counsel before signing any agreement, and use these samples as a starting point to create your own impactful and effective Letters of Intent.
By understanding the nuances of LOIs and utilizing the samples provided, you’ll be well-equipped to navigate future negotiations and achieve your desired outcomes. Good luck!