A Letter of Intent should include all the basic elements that would be included in its corresponding formal contract.
These include the names of each party, their contact information, the scope of work, deadlines, milestones, payment terms, and any other pertinent details.
To understand what to include in a Letter of Intent, review the following steps.
Enter your name and address
Write your full name and your address at the top of the document. This will serve as a return address to receive a copy of the letter in the future.
Include the name and address of the recipient
Add the name and address of the recipient, usually the seller. If it is a Letter of Intent for a job, this is where the employer’s information goes.
Ensure you add both the full name and full address to avoid any confusion.
State if the letter is binding or non-binding
Make sure to write a clear statement regarding if the letter will be binding or not. With a clear statement, both parties and any legal representatives can know if the document is enforceable or not.
Introduce the two parties
Add all the basic information regarding the parties involved in the LOI. This means, including your full name as well as the other party’s full name.
Also, include your full address and the other party’s complete mailing address. Enter the payment details.
Add payment terms
Include when one party will provide payments and how often.
In other words, how much the total amount is. Include if it will be paid all at once or in monthly or weekly payments.
State if financing is a requirement
Enter if bank financing will be a requirement for the buyer to complete a purchase. You can add if the agreement will be conditional upon the buyer obtaining financing or not.
Indicate the governing state
Add the state jurisdiction that the Letter of Intent will fall under. This is important as certain states have different laws, and they may affect your LOI.
Sign the document
Add the signatures of both parties to the bottom of the document. Both you and the other party must sign the Letter of Intent.
Provide your signatures, along with the date and your names in print.
Download LawDistrict’s legal template to ensure you do not leave out any essential details in your letter.