Draw On Legal Alabama Letter Of Intent Forms For Free

A letter of intent will typically include the names of the buyers, sellers, company, object being sold or transferred, and the intended payment methods and price. Letters of intent may also define an expiration date and any special warranties you find necessary. A letter of intent is not a binding contract.

You should include a clear statement that the agreement is not legally binding, but there may be legally binding clauses you wish to add to a letter of intent, including: Confidentiality - creating lawfully enforceable obligations of confidentiality or 'non-disclosure' between parties.

A court relies on two factors when determining if a letter of intent is binding: written expressions of intent present in the letter and demonstrative actions taken by both parties after the letter of intent is signed. If the letter is treated as a contract, it could be ruled binding.

The term 'letter of intent' has no legal significance. However, the courts have often treated so-called letters of intent as contracts capable of being enforced, so care must be taken when drafting them.

Buyers generally prepare the letter of intent. Generally, however, the party that prepares the letter of intent has the upper hand. He or she can decide: What matters will be addressed in the letter of intent.

Follow these steps when writing an LOI: Write the introduction. ... Describe the transaction and timeframes. ... List contingencies. ... Go through due diligence. ... Include covenants and other binding agreements. ... State that the agreement is nonbinding. ... Include a closing date.