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Before a contract is signed, a letter of intent records the planned agreement between two or more parties. A example letter of intent may be found here.
A letter of intent, also known as a term sheet, is a legal document that describes the planned agreement between two or more parties prior to the completion of an agreement or contract. It is typically utilized in a buyout, merger, leasing, or recruiting offer negotiating process.
What’s in it?
A letter of intent will usually contain the names of the buyers and sellers, as well as the firm and the item being sold or transferred, as well as the desired payment methods and price. Letters of intent might also include an expiry date and any particular guarantees you want.
A letter of intent’s limitations
A letter of intent is not a legally binding document. You should avoid language that makes specific commitments. Instead, concentrate on the desires of the consumers and sellers.
