LOI or letter of intent is a formal document that displays the commitment of 1st party with another to do some sort of business. Moreover, the Letter of Intent (LOI) holds all the terms and condition of the deal. LOI’s are generally used in major business transactions.
Details in Letter of Intent
Here is the list of details that a letter of intent should carry:
- Both parties name, address, mobile number and email ID
- Nature of the business, company history and name of the company drafting the letter of intent.
- The person requesting for Letter of intent name, designation, company name, and date of requesting.
- The purpose of the letter of intent
- Pre explanation on the predicted outcome of the intent
- It shall also contain the space for opinions or suggestion for the person requesting for the letter of intent
- LOI’s language shall be legally sound and easy enough to understand.
- The letter must contain all the plan of action, timelines, and preconditions of the intent.