A Letter of Intent (LOI) is a crucial document that outlines the preliminary understanding between two or more parties who intend to enter into a formal agreement. It serves as a roadmap, clarifying key terms, conditions, and intentions before committing to a legally binding contract. Understanding the nuances of crafting an effective LOI is paramount, regardless of the context – be it a business acquisition, real estate transaction, partnership, or even a job offer. This comprehensive guide provides 23 diverse letter of intent samples, along with expert insights, to empower you in creating impactful LOIs for any situation.
Crafting a compelling Letter of Intent necessitates clarity, precision, and a thorough understanding of the underlying transaction or agreement. It’s about setting expectations, identifying potential roadblocks, and laying the groundwork for a successful and mutually beneficial relationship. This article will provide varied examples across a spectrum of industries. Mastering the nuances of these samples can transform your negotiation approach and achieve strategic business goals. Here are 23 examples of letter of intent to consider.
Letter of Intent Samples for Various Scenarios
1. Business Acquisition Letter of Intent
[Date]
[Buyer Name]
[Buyer Address]
[Seller Name]
[Seller Address]
Subject: Letter of Intent for Acquisition of [Company Name]
Dear [Seller Name],
This letter constitutes our good faith intention to acquire [Company Name] (the “Company”) subject to the terms and conditions outlined below:
1. Purchase Price: $[Amount] payable in cash at closing.
2. Due Diligence: We will have [Number] days to conduct due diligence.
3. Closing Date: Anticipated closing date is [Date].
4. Exclusivity: You agree to not solicit offers from other buyers for [Number] days.
This letter is not a binding agreement except for the provisions regarding exclusivity and confidentiality. We look forward to a successful closing.
Sincerely,
[Buyer Name]
2. Real Estate Purchase Letter of Intent
[Date]
[Buyer Name]
[Buyer Address]
[Seller Name]
[Seller Address]
Subject: Letter of Intent to Purchase Real Estate at [Property Address]
Dear [Seller Name],
This letter confirms our intention to purchase the property located at [Property Address] under the following terms:
1. Purchase Price: $[Amount].
2. Deposit: $[Amount] to be held in escrow.
3. Financing: Subject to Buyer obtaining financing within [Number] days.
4. Closing Date: Closing to occur on or before [Date].
This letter is for discussion purposes only and is not a binding agreement.
Sincerely,
[Buyer Name]
3. Partnership Letter of Intent
[Date]
[Partner 1 Name]
[Partner 1 Address]
[Partner 2 Name]
[Partner 2 Address]
Subject: Letter of Intent for Partnership
Dear [Partner 2 Name],
This letter outlines our mutual intention to form a partnership for the purpose of [Partnership Purpose]. Key terms include:
1. Profit Sharing: [Percentage]% to [Partner 1 Name] and [Percentage]% to [Partner 2 Name].
2. Responsibilities: [Partner 1 Name] will be responsible for [Responsibilities] and [Partner 2 Name] will be responsible for [Responsibilities].
3. Capital Contribution: Each partner will contribute $[Amount].
4. Governing Law: [State/Jurisdiction] law will govern this partnership.
This letter is non-binding except for the confidentiality clause.
Sincerely,
[Partner 1 Name]
4. Job Offer Letter of Intent
[Date]
[Company Name]
[Company Address]
[Candidate Name]
[Candidate Address]
Subject: Letter of Intent for Employment – [Job Title]
Dear [Candidate Name],
We are pleased to offer you the position of [Job Title] at [Company Name], subject to the following terms:
1. Salary: $[Amount] per year.
2. Benefits: Standard company benefits package.
3. Start Date: [Date].
4. Reporting To: [Manager Name].
This letter is intended as a preliminary offer and is not a binding employment contract.
Sincerely,
[Hiring Manager Name]
5. Lease Agreement Letter of Intent
[Date]
[Tenant Name]
[Tenant Address]
[Landlord Name]
[Landlord Address]
Subject: Letter of Intent to Lease Property at [Property Address]
Dear [Landlord Name],
This letter expresses our interest in leasing the property at [Property Address] under the following terms:
1. Monthly Rent: $[Amount].
2. Lease Term: [Number] years.
3. Security Deposit: $[Amount].
4. Use of Property: [Intended Use].
This letter is not a binding lease agreement and is subject to further negotiation.
Sincerely,
[Tenant Name]
6. Supply Agreement Letter of Intent
[Date]
[Buyer Name]
[Buyer Address]
[Supplier Name]
[Supplier Address]
Subject: Letter of Intent for Supply Agreement
Dear [Supplier Name],
This letter outlines our intention to enter into a supply agreement for the supply of [Product/Service]:
1. Product/Service: [Description].
2. Quantity: [Quantity].
3. Price: $[Amount] per unit.
4. Delivery Schedule: [Schedule].
This letter is for preliminary discussion only and is not a binding contract.
Sincerely,
[Buyer Name]
7. Joint Venture Letter of Intent
[Date]
[Company 1 Name]
[Company 1 Address]
[Company 2 Name]
[Company 2 Address]
Subject: Letter of Intent for Joint Venture
Dear [Company 2 Name],
This letter expresses our mutual interest in forming a joint venture to [Purpose of Joint Venture]. Key elements include:
1. Purpose: To [Specific Goals].
2. Capital Contribution: Each party contributes [Details].
3. Management: [Management Structure].
4. Profit/Loss Sharing: [Distribution Percentages].
This letter is not a binding agreement, except for confidentiality.
Sincerely,
[Company 1 Name]
8. Service Agreement Letter of Intent
[Date]
[Client Name]
[Client Address]
[Service Provider Name]
[Service Provider Address]
Subject: Letter of Intent for Service Agreement
Dear [Client Name],
This letter confirms our intention to provide [Services] under the following terms:
1. Services: [Detailed Description].
2. Fee: $[Amount] per [Time Period/Project].
3. Term: [Duration].
4. Payment Schedule: [Payment Terms].
This letter is a preliminary outline and not a binding service agreement.
Sincerely,
[Service Provider Name]
9. Loan Agreement Letter of Intent
[Date]
[Borrower Name]
[Borrower Address]
[Lender Name]
[Lender Address]
Subject: Letter of Intent for Loan Agreement
Dear [Lender Name],
This letter expresses our interest in securing a loan under these terms:
1. Loan Amount: $[Amount].
2. Interest Rate: [Percentage]%.
3. Repayment Terms: [Details].
4. Security: [Collateral, if any].
This letter is not a binding commitment to lend.
Sincerely,
[Borrower Name]
10. Confidentiality Agreement Letter of Intent
[Date]
[Disclosing Party Name]
[Disclosing Party Address]
[Receiving Party Name]
[Receiving Party Address]
Subject: Letter of Intent for Confidentiality Agreement
Dear [Receiving Party Name],
This letter precedes the sharing of confidential information related to [Subject Matter]. We intend to create a formal confidentiality agreement to ensure that:
1. Definition of Confidential Information: [Specific Details].
2. Obligations of Receiving Party: [Details].
3. Term: [Duration of Confidentiality].
This letter acknowledges the need for confidentiality during discussions.
Sincerely,
[Disclosing Party Name]
11. Franchise Agreement Letter of Intent
[Date]
[Franchisee Name]
[Franchisee Address]
[Franchisor Name]
[Franchisor Address]
Subject: Letter of Intent for Franchise Agreement
Dear [Franchisor Name],
This letter confirms our interest in obtaining a franchise for [Franchise Name] under the following terms and conditions:
1. Franchise Location: [Desired Location].
2. Initial Franchise Fee: $[Amount].
3. Royalty Payments: [Percentage]% of gross sales.
4. Term of Franchise: [Number] years.
This letter is non-binding and is subject to mutual agreement on the final franchise agreement.
Sincerely,
[Franchisee Name]
12. Technology Licensing Letter of Intent
[Date]
[Licensee Name]
[Licensee Address]
[Licensor Name]
[Licensor Address]
Subject: Letter of Intent for Technology Licensing Agreement
Dear [Licensor Name],
This letter outlines our intent to license the technology related to [Description of Technology] on the following basis:
1. Licensed Technology: [Specific Patents/Copyrights].
2. Territory: [Geographic Scope].
3. License Fees: $[Amount] upfront, plus [Percentage]% royalties.
4. Exclusivity: [Exclusive/Non-Exclusive] license.
This letter is subject to a fully executed licensing agreement.
Sincerely,
[Licensee Name]
13. Investment Letter of Intent
[Date]
[Investor Name]
[Investor Address]
[Company Name]
[Company Address]
Subject: Letter of Intent for Investment in [Company Name]
Dear [Company Name],
This letter conveys our intention to invest in your company under the following terms:
1. Investment Amount: $[Amount].
2. Equity Stake: [Percentage]% ownership.
3. Valuation: $[Pre-Money Valuation].
4. Closing Conditions: [Due Diligence, etc.].
This letter is non-binding, except for confidentiality and exclusivity clauses.
Sincerely,
[Investor Name]
14. Research Collaboration Letter of Intent
[Date]
[Institution 1 Name]
[Institution 1 Address]
[Institution 2 Name]
[Institution 2 Address]
Subject: Letter of Intent for Research Collaboration
Dear [Institution 2 Name],
This letter outlines our mutual intention to collaborate on research related to [Research Area]:
1. Research Project: [Specific Details].
2. Responsibilities: [Institution 1 Responsibilities] and [Institution 2 Responsibilities].
3. Funding: [Source and Allocation].
4. Intellectual Property: [Ownership and Licensing].
This letter is subject to a formal research collaboration agreement.
Sincerely,
[Institution 1 Name]
15. Memorandum of Understanding (MOU) Letter of Intent
[Date]
[Party 1 Name]
[Party 1 Address]
[Party 2 Name]
[Party 2 Address]
Subject: Letter of Intent for Memorandum of Understanding (MOU)
Dear [Party 2 Name],
This letter confirms our mutual desire to establish a Memorandum of Understanding (MOU) regarding [Subject Matter]:
1. Purpose: [Goals and Objectives].
2. Areas of Cooperation: [Specific Activities].
3. Responsibilities: [Party 1 Responsibilities] and [Party 2 Responsibilities].
4. Term: [Duration of MOU].
This letter is non-binding and intended to guide future discussions.
Sincerely,
[Party 1 Name]
16. Equipment Purchase Letter of Intent
[Date]
[Buyer Name]
[Buyer Address]
[Seller Name]
[Seller Address]
Subject: Letter of Intent for Equipment Purchase
Dear [Seller Name],
This letter outlines our interest in purchasing the following equipment:
1. Equipment Description: [Detailed Description].
2. Quantity: [Number].
3. Price: $[Amount] per unit.
4. Delivery Terms: [Schedule and Location].
This letter is a preliminary expression of interest and not a binding agreement.
Sincerely,
[Buyer Name]
17. Consulting Agreement Letter of Intent
[Date]
[Client Name]
[Client Address]
[Consultant Name]
[Consultant Address]
Subject: Letter of Intent for Consulting Agreement
Dear [Client Name],
This letter outlines our mutual interest in establishing a consulting agreement under the following terms:
1. Scope of Services: [Detailed Description of Consulting Services].
2. Compensation: $[Amount] per [Hour/Day/Project].
3. Term of Agreement: [Duration of Consulting Engagement].
4. Confidentiality: [Terms and Conditions].
This letter serves as a preliminary agreement and is non-binding.
Sincerely,
[Consultant Name]
18. Software Development Letter of Intent
[Date]
[Client Name]
[Client Address]
[Developer Name]
[Developer Address]
Subject: Letter of Intent for Software Development
Dear [Client Name],
This letter confirms our intent to develop software for your organization based on the following terms:
1. Software Description: [Specific Features and Functionality].
2. Project Timeline: [Estimated Completion Date].
3. Development Cost: $[Amount] (Estimate).
4. Intellectual Property Rights: [Ownership and Usage].
This letter is preliminary and subject to further negotiation.
Sincerely,
[Developer Name]
19. Event Sponsorship Letter of Intent
[Date]
[Sponsor Name]
[Sponsor Address]
[Event Organizer Name]
[Event Organizer Address]
Subject: Letter of Intent for Event Sponsorship of [Event Name]
Dear [Event Organizer Name],
This letter expresses our intention to sponsor your event based on the following conditions:
1. Event Name: [Event Name].
2. Sponsorship Level: [Gold, Silver, Bronze].
3. Sponsorship Fee: $[Amount].
4. Benefits for Sponsor: [Logo Placement, Speaking Opportunity, etc.].
This letter is non-binding, subject to mutual agreement.
Sincerely,
[Sponsor Name]
20. Merger Letter of Intent
[Date]
[Company A Name]
[Company A Address]
[Company B Name]
[Company B Address]
Subject: Letter of Intent for Merger of [Company A] and [Company B]
Dear [Company B Name],
This letter outlines our mutual interest in merging our companies under the following terms:
1. Merger Ratio: [Exchange Ratio of Shares].
2. Management Structure: [Leadership Roles].
3. Due Diligence: [Timeline for Due Diligence].
4. Closing Date: [Proposed Closing Date].
This letter is non-binding, except for confidentiality.
Sincerely,
[Company A Name]
21. Distribution Agreement Letter of Intent
[Date]
[Manufacturer Name]
[Manufacturer Address]
[Distributor Name]
[Distributor Address]
Subject: Letter of Intent for Distribution Agreement
Dear [Distributor Name],
This letter expresses our intent to appoint you as a distributor for our products:
1. Products: [List of Products].
2. Territory: [Geographic Area].
3. Pricing: [Wholesale and Retail Prices].
4. Term: [Duration of Agreement].
This letter is preliminary, subject to a formal agreement.
Sincerely,
[Manufacturer Name]
22. Website Design Letter of Intent
[Date]
[Client Name]
[Client Address]
[Designer Name]
[Designer Address]
Subject: Letter of Intent for Website Design
Dear [Client Name],
This letter outlines our interest in designing a website for your organization with the following terms:
1. Website Features: [Detailed Description].
2. Timeline: [Estimated Project Duration].
3. Design Cost: $[Amount] (Estimate).
4. Hosting: [Hosting Options and Costs].
This letter is preliminary and non-binding.
Sincerely,
[Designer Name]
23. Property Management Letter of Intent
[Date]
[Property Owner Name]
[Property Owner Address]
[Management Company Name]
[Management Company Address]
Subject: Letter of Intent for Property Management Services
Dear [Property Owner Name],
This letter confirms our intention to provide property management services under the following terms:
1. Property Address: [Full Address].
2. Management Fee: [Percentage]% of Monthly Rent.
3. Services Included: [Tenant Screening, Rent Collection, Maintenance].
4. Term of Agreement: [Duration].
This letter is subject to a fully executed management agreement.
Sincerely,
[Management Company Name]
Conclusion: Mastering the Art of the Letter of Intent
The Letter of Intent (LOI) is more than just a formality; it’s a strategic tool that sets the stage for successful negotiations and agreements. As demonstrated by the 23 diverse samples presented, the content and structure of an LOI are highly dependent on the specific context and objectives of the parties involved. However, certain core principles remain constant. These include clarity, precision, and a focus on key terms and conditions.
A well-crafted LOI should clearly define the scope of the intended agreement, identify potential risks and challenges, and establish a framework for future negotiations. It should also include provisions regarding confidentiality, exclusivity, and governing law. While most LOIs are non-binding (except for specific clauses like confidentiality), they carry significant weight as a reflection of the parties’ good faith intentions. Therefore, it’s essential to approach the drafting and negotiation of an LOI with the same level of diligence and attention to detail as a formal contract.
The samples provided in this article offer a valuable starting point for crafting your own LOIs. Remember to tailor these templates to your specific needs and seek legal counsel to ensure that your LOI accurately reflects your intentions and protects your interests. By mastering the art of the Letter of Intent, you can significantly increase your chances of achieving successful outcomes in a wide range of business and personal transactions.
Ultimately, the effectiveness of a Letter of Intent hinges on its ability to clearly communicate the parties’ intentions, identify potential areas of disagreement, and establish a foundation of trust and cooperation. By following the guidelines and examples provided in this article, you can create LOIs that are not only legally sound but also strategically advantageous.