Letter of Intent Free

Under 16.2 minutes

Last updated 2020-04-27 18:38:23

Formats Word and PDF

A document sent by a party looking to build a final contract is called a Letter of Intent. This letter is also known as a Letter of Understanding and is sent to the other potential party and contains the bare bones of the whole agreement.

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Template Overview

Note that a Letter of Intent isn't the actual contract - in other words, it's not the piece of paper that will create the underlying agreement - it's just the first step for a party to open negotiations about a contract that has already been discussed.

This Letter of Intent is quite easy, as it only needs to contain the necessary information that will end up being the building blocks of the contract.

Tip: How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

How to use this template

In the document, it is required to enter identifying information of the parties (such as the names, contact information, and other). Also, the important details of the contract will be entered (the underlying transaction, confidentiality provisions, the pricing information).

A completed document should be printed and signed.

Applicable law

Letters of Intent are a precedent to contracts in the United States, but they are not binding agreements. This Letter of Intent especially makes clear that neither party is agreeing to be bound, and that the Letter of Intent is just the beginning of negotiations.

That said, both Federal and state-specific laws govern contracts, depending on the contents and subject matter of the contract. State laws govern general contract principles like formation and mutual understanding. Federal laws may restrict what services can be contracted for (for example, you may not contract for anything illegal) and certain broad categories, like contracting for something that looks more like an employment relationship.