Letter of Intent
A Letter of Intent (LOI) is a document signed between two parties when they wish to commence formal negotiations. Customisable and ready to use in under 15 minutes.Get 1st document free
A Letter of Intent (LOI) is a document signed between two parties when they wish to commence formal negotiations. The terms of such a letter can differ, but its overarching purpose is to set things in motion, with a signed agreement being the finish line. This is often useful in situations where commencement can’t afford to be delayed while waiting for a formal contract to be drafted. A common example of this is major construction and infrastructure projects that typically have tight deadlines. Letters of Intent are regularly associated and confused for a memorandum of understanding. The key element that separates the two documents is the ability for a letter of intent to become legally binding in certain instances.
What’s the difference between a Letter of Intent and Memorandum of Understanding?
A memorandum of understanding sets out the proposed terms in the negotiation stage, however, it is not legally binding in nature. A letter of intent is used in most large business transactions and outlines the process of negotiation and provides a structure for how things will proceed in the intended agreement. Unlike a memorandum of understanding, provision of a letter of intent can be considered legally binding in regards to certain provisions, if specified within the letter of intent.
Use this Letter of Intent If:
- You wish to establish the basic terms to be used in a future agreement between parties
- You want to commence formal negotiation with another party
What does this Letter of Intent Cover?
- Acknowledgement of limitations
- Notice of termination
- Primary obligations
- Additional agreements
- Rights and remedies
- Governing law
Not sure what you need? Call and speak to one of our consultants on1800 529 728
How it works
Follow the steps below and you’ll have your ready-to-use document in no time.
Set up a free Lawpath account
Search and find the document you need from our list
Follow the prompts and fill in all the relevant details
Download your document in ready-to-use PDF or Docx* format. Access from any device, at anytime.