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Letter of intent

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  • It outlines basic fundamentals of an agreement and lists all the obligations, terms and conditions that must be followed if the transaction is carried out.
  • A letter of intent is an instrument of negotiation
  • It is iterative in nature i.e.; parties can counter the terms of the letter of intent till they formalize the deal.
  • It protects both the parties to the deal by clearly outlining their rights and obligations during the deal making process.

  • While there is no hard and fast rule for issuing a letter of intent, they are typically issued to make the following transactions smooth and hassle free.
  • Employment and recruitment
  • Bulk sale and purchase of goods and services
  • Private Investments
  • Government contracts
  • Institutional financing

Back

Know More

  • It outlines basic fundamentals of an agreement and lists all the obligations, terms and conditions that must be followed if the transaction is carried out.
  • A letter of intent is an instrument of negotiation
  • It is iterative in nature i.e.; parties can counter the terms of the letter of intent till they formalize the deal.
  • It protects both the parties to the deal by clearly outlining their rights and obligations during the deal making process.

  • While there is no hard and fast rule for issuing a letter of intent, they are typically issued to make the following transactions smooth and hassle free.
  • Employment and recruitment
  • Bulk sale and purchase of goods and services
  • Private Investments
  • Government contracts
  • Institutional financing