Free templates for Letter of intent. Use Contractbook to create, use & store Letter of Intent templates.
A Letter of Intent (or LOI) is a short, non-binding contract that precedes a binding agreement, such as a share purchase agreement or asset Purchase Agreement (definitive agreements). While a Letter of Intent is non-binding, it may have some binding provisions and clauses, such as non-disclosure, exclusivity, and governing law.
The specific details in your Letter of intent will be unique to the deal you are trying to put together. However, every robust letter of intent will follow the same general framework. As a rule of thumb, you should ensure your letters of intent include the below.
You can use a Letter of Intent when you have a preliminary agreement in place with another party regarding a potential purchase or another business transaction. Although a letter of intent is non-binding, it's a good indication two parties are working towards a deal in good faith, and that one (or both) is not simply wasting the other's time.
A Letter of Intent is an excellent document to use if you and the other party agree on some terms, but negotiation continues around others. You can use your Letter of Intent to outline the terms that have been agreed, meaning they're not getting in the way or clouding discussions as you seek to finalize your agreement. You may even use a Letter of Intent to announce the nature of a deal, like a joint venture or merger.
In addition, using a Letter of Intent can deliver several benefits to both the buyer and the seller.
For the seller, using a Letter of Intent will:
For the buyer, using a Letter of Intent will:
Overall, a Letter of Intent should protect all parties involved in the proposed transaction and be a robust foundation for any finalized agreement.
You can use a Letter of Intent in various scenarios, including but not limited to:
There are other scenarios in which you may use a different Letter of Intent, such as a job offer.
Contractbook’s Letter of Intent template is designed for a business acquisition that is to be paid for with a combination of cash and the buyer's stock. However, as well as tailoring this Letter of Intent template on that basis, when you create a Contractbook account, you can change as much of our templates as you like.
Tame your chaos with a central place to store and manage contracts, so you can analyze, decide and act quicker.
Give it a try now