Apr 15,2021 | 2 min read

Letter of Intent | Download Free Templates

What is a Letter of Intent?
Letter of Intent is a document which extends the party's intent to formalize a legal binding relationship with the other party. Indicating that the sender has an intention to enter into a contract in the situation described in the letter. Mere sending a letter of intent does not create any legal binding on the recipient , or it does not constitute any kind of promise or contract.

Why it is Important?
It is very important to draft an effective Letter of Intent to seek for a positive response from the recipient. The effective Letter of Intent engross the recipient and creates more chances of getting a positive response. It should be written in a simple language outlining your intentions or business proposal in a non- ambiguous manner. Generally, it is understood that a Letter of Intent is non- binding but there are certain provisions such as Confidentiality, exclusivity and other such provisions that are binding. It also sets forth the terms & condition of the proposed deal.

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Lawyered Team

Lawyered Team