Business Letter of Intent
Feb. 24, 2007
Letters of Intent resemble written contracts, but are usually not binding on the parties. However, some letters of intent contain provisions that are binding, such as non-disclosure agreements, or provisions promising exclusive rights to negotiate.
The purposes of a Letter of Intent may be:
- to clarify the key points of a complex transaction for the convenience of the parties
- to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal
- to provide safeguards in case a deal collapses during negotiation