Letter Of Intent for Business

Posted by

A letter of intent is an important need for a business. A letter of intent is required during sale and purchase of a property, for a financial transaction and much more. A letter of intent is used to carry out any serious negotiations in a business. With this letter, you can put across all your points that you need to convey to the other party, be it financial decisions, any terms and conditions without offending the other party and maintain a steady relationship between both the parties. Maintaining confidentiality is one of the biggest traits involved in a letter of intent.

Letter of Intent Samples

letter of intent sample pdf, letter of intent sample format

While writing a letter of intent, there are certain rules and regulations that need to be followed to fulfill the purpose for the same:

A letter of intent should be short, crisp and simple. Exaggerating the letter would make it a descriptive agreement and the actual purpose might not be fulfilled.

A letter of intent indicates just an agreement and not a final promise to close the deal.

A letter of intent should be designed as such that it looks more or less like a proposal rather than a commitment to the other party.

Letter of Intent Format

letter of intent for promotion, letter of intent sample pdf

A letter of intent should not include too much of details in it and if done, it should be clearly specified as to whether it is of a binding or a non-binding nature.

While drafting a letter of intent, if the binding provisions are ignored, a fine may be levied at any time.

In no case, should confidential information of a letter of intent be disclosed post signing the letter, without the consent of all the parties involved?

While writing the letter, it is necessary to limit the use of terms like ‘intend,’ ‘desire,’ ‘would,’ or ‘may.’ Ensure to avoid using words as ‘shall’ or ‘will’ as that might indicate that a final decision has been reached.

Always ensure to sign two copies of the letter, one for you and for the other involved party.

Try and get the documents notarized as doing so reduces the chances of any party backing off or declining the validity of their signatures.

Letter of Intent Example

letter of intent to apply, writing a letter to intent

A letter of intent for business transactions follows a particular format:

Introduction and Subject Matter Description- It describes and gives a brief overview of what the letter is about and what it each party would do in the proposed transaction. The introduction should provide enough details about the actions of the two parties. It also clears if it is a binding or a non-binding contract.

Section 1: Proposal- It describes the proposed transaction about the sale of property, service. The responsibility and role of each party are described in the specific space.

Section 2: Amount Decision- It is all about a party needing to pay a certain amount to the other, the amount due can also be mentioned in the specific space.

Section 3: Timing (Optional) – Here a closing date is specified, that is, a time by which the property would be transferred.

Section 4: Contingencies- Contingencies are steps that need to be taken prior to the final event, an i.e. signing of final agreements, any permissions that need to be received, investigations on the property or materials before the closing date.

Sample Letter of Intent For Job

sample letter of intent for job opening, sample letter of intent for job application

There are a couple of other sections that come in between followed by which the last section is where the date and the signature of both the parties are involved and a copy is retained by the seller and one shared with the other party.

You would find different examples of a letter of intent. An example of a letter of intent that you can use is as under:

<Insert Name and Address of Buyer>

<Insert Name and Address of Seller>

<Insert Date>

<Salutations and Greetings to the Seller>




The body of the letter should include all the terms and conditions involved in selling the property. It mentions the sum of money that needs to be paid on the first go and also decides the installments that would be made and when and on which date those need to be paid.

How to Write a Letter of Intent

how to write a letter of intent for a job, how to write a letter of intent for graduate school

The body also includes details about the possession of the business and time period, required, if any, to review any necessary documents required to arrive at a decision.


The conclusion section should specifically mention that it is a formal agreement and not a final letter and at any time as per requirement, the terms and conditions can be altered. Also, confidentiality of the agreement needs to be ensured and proper consent should be provided that no details, in any case, would be revealed prior to agreement from both the parties.

<Name and Signature of Both the Parties>

<Today’s Date>

Getting the documents notarized is another way to validate that in no case will the confidentiality of the agreement breached and if done, there would be consequences, in terms of fine or agreement being declared null and void.

Letter of Intent Template

letter of intent template word,letter of intent template uk

These sort of samples are easily available on the internet and a modification here and there in the letter can give you the perfect letter of intent that you are in need of. A long letter of intent slows the process and hence letter should be short and to the point.

Commitment Letter Sample

personal commitment letter sample, loan commitment letter sample

A letter of Intent is also known as Letter of Inquiry or Concept. A few points that are needed to be kept in mind while writing a letter of intent is-

Brevity- the shorter, the better.

The inclusion of proper sender and receiver information.

Positive content.

Proper notarization.

Ensuring the format does not sound as if it is a final deal closing agreement.

All in all, it is not necessary that a letter of intent is sent in every case, however, when one is required, make sure that the letter has been drafted as such that there is no scope for a miscommunication and it clearly depicts that it is just the presentation of an agreement and not a final decision. The final decision is arrived at only after consent of both the parties in each case.

Leave a Reply

Your email address will not be published. Required fields are marked *