Letters of intent
What is a letter of intent?
A letter of intent is a letter from one company to another acknowledging a willingness and the ability to do business.
Often both parties involved in a business or commercial real estate transaction will sign a letter of intent before preparing a definitive contract. Such letters are usually not contracts and may not be enforced. They are generally documents stating serious intent to carry out certain business activities.
By signing a letter of intent, you know early on that you and the other party agree on the major terms of the transaction. This can save you considerable time and expense when preparing the definitive contract itself.
Do you need an attorney to help review or draft a letter of intent?
Yes – Letters of intent are usually detailed documents that require meticulous review and drafting. Hiring an attorney to aid in the review and preparation of such documents is essential.
An attorney can help you review and draft a letter of intent to make sure that all the major details regarding the transaction have been agreed on by both parties. Further, your attorney will also prove invaluable when you later draft the official final contract for the transaction.