Free Printable Letter Of Intent For Contract
What You Need to Know About Letter of Intent for Contract?
If you have ever agreed to a contract, a letter of intent for the contract is one of the documents which used as the outline board. This letter is also familiar with its abbreviation LOI. In short, it is a kind of document where two parties are negotiated then the agreement is outlined before the advance contract is written. When the agreement is between two business parties, there should contain that the letter is non-binding otherwise it can be legally binding based on the word consideration input in the letter. The court is the one in charge states whether the letter is legally or non-binding.
Before we go further about the letter of intent for the contract, it is better to see both advantages and disadvantages of using LOI. Several advantages can be had by you. The first is setting out essential terms of the transaction. This letter allows the parties engaged only to focus on the essential terms like rent and loan amount, purchase price, and closing date. This letter is also able to address big issues arisen. Other than that, Good Faith is established. Even it is not legally binding, a party can trust the term so that this LOI is used. The last is LOI guides to the deal. Meanwhile, the disadvantage of this LOI is using this letter is potential legally binding when the language is not carefully drafted.
Samples of Letter Of Intent For Contract :
When it comes to the contents of the letter of intent for the contract, each type of business has a different format structure. The common LOI must contain several key elements here. They are an introduction where it explains the purpose of the document along with the date of the document becomes effective. The next is the identification of parties. The parties’ information is placed here as clearly as possible to avoid confusion. Transaction and timing are the next where it is used to describe the transaction as like business type, purchase price, and even deadline. If you are interested in this type of letter, you can download a free example letter at the bottom of this page too.
Letter Of Intent Template For Contract | Word – download