Letter of Intent (LOI)
BusinessA preliminary document outlining the key terms and intentions of a potential deal before a formal agreement is drafted. Commonly used in mergers, acquisitions, and real estate transactions.
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A preliminary document outlining the key terms and intentions of a potential deal before a formal agreement is drafted. Commonly used in mergers, acquisitions, and real estate transactions.
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Key Clauses
- 1
Transaction Overview
Summarizes the proposed deal structure and key terms.
- 2
Due Diligence
Outlines the investigation period and access to information.
- 3
Exclusivity Period
Prevents the other party from negotiating with competitors during a set period.
- 4
Binding vs. Non-Binding
Clarifies which provisions are legally binding and which are not.
- 5
Conditions Precedent
Lists conditions that must be met before the deal can close.
When You Need This
- Initiating negotiations for a business acquisition or merger
- Making a formal offer on commercial real estate
- Establishing intent before drafting a complex partnership agreement
Frequently Asked Questions
What is a Letter of Intent (LOI)?
A preliminary document outlining the key terms and intentions of a potential deal before a formal agreement is drafted. Commonly used in mergers, acquisitions, and real estate transactions.
What should a Letter of Intent (LOI) include?
A comprehensive letter of intent (loi) should include: transaction overview, due diligence, exclusivity period, binding vs. non-binding, conditions precedent.
When do I need a Letter of Intent (LOI)?
Initiating negotiations for a business acquisition or merger. Making a formal offer on commercial real estate. Establishing intent before drafting a complex partnership agreement.
Is this template legally binding?
Templates provide a strong starting point, but we recommend having important agreements reviewed by a qualified attorney in your jurisdiction to ensure they meet local legal requirements.
Can I customize this template?
Yes — all bracketed [placeholder] fields can be replaced with your specific information. You can also add, remove, or modify clauses to fit your particular situation.
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