A letter of intent is a document outlining an agreement before the agreement is finalized between two or more parties. This document is considered as a critical step before proceeding to earnest negotiations. Provided below a template letter of intent to establish a guide.
A letter of intent is usually a proposal to a second person. Often written to set down business ventures (Joint-Venture Agreements), exchange of services (Shares Purchase Agreements), school admissions (To join an institute), grants or prospective agreements. The main goal is to comprehensively address your intentions to the recipients concerning any topic or issue.
Here are a few tips:
- Begin by setting a formal heading at the top margin.
- Be clear and straightforward. Don’t drag the body paragraph to irrelevant details that don’t illustrate the intent.
- State your purpose or interest in the first 2-3 lines.
- Include the names of all affected parties.
- List any guidelines, details, concerns, or inquiries, to be addressed in future paperwork contracts.
- In closing notify the recipient(s) that the document is not legally binding.
- Close the letter with “Sincerely”.
- Print on the company’s letterhead and sign your name above the Contact Information.
Each type of Letter of Intent will vary according to its purpose. Here’s a template for a Letter of Intent to Purchase.
Letter of Intent Template:
96 Down Street
Los Angeles, California
Dear McConnell Williams,
After our discussion on Wednesday, I discussed the situation with my business partners, and we arrived at the conclusion that we intend to purchase your firm. We are willing to pay your requested purchase price of [amount sum], which includes both, the firm and the capital necessary to operate it.
We would like to meet with you on [the date] to finalize the sale at [location]. We will complete all the necessary paperwork and tender payment, as agreed. At that meeting, we will also set a date, within the next ninety days, on which we will take over the operation of the firm.