Instantly download Letter of Intent Forms for almost any kind of business proposition. These templates are fully editable and easily customized to fit your circumstances.
There are certain advantages to having a letter of intent in place while negotiating a transaction:
You can place restrictions on accepting proposals from other parties for a specified period of time under a "no shop" clause.
Confidentiality provisions protect the proprietary, secret and confidential information exchanged during negotiations.
It indicates to lenders and suppliers each party's intent to proceed with the arrangement, which can then allow financing and work to proceed even though the final agreement has not been signed.
You can set a drop dead date, by which the parties agree to terminate discussions if they have not reached an agreement, and after which date the parties will have no further obligations under the LOI except for any provisions which survive the termination (such as confidentiality).