Minneapolis Business Attorney

Letters of Intent

A letter of intent (LOI) is a document that outlines an agreement between two or more parties before the arrangement is finalized. Possible purposes of a letter of intent include clarifying key points of a complicated transaction, officially declaring that stated parties are engaged in negotiation, or to provide support in case the deal fails. They also provide a timeline and a method for resolution, simplifying the discussion process between two parties. Letters of intent are similar to written contracts, although they are not as binding. Certain portions of the LOI may be restrictive and outlive the letter of intent, including non-disclosure agreements, a “no-shop” provision detailing exclusive negotiation rights, and a pact to collaborate in good faith.

Examples of situations that might utilize a letter of intent include purchase or share purchase agreements, joint-venture contracts, and any deal involving a large financial sum. More specific examples of the use of letters of intent include the document included in the application process at United States universities and colleges, letters written for disabled children describing their health history, current status, and location of all other important papers, and for high-level college level athletes stating their desire to play for a certain school.

Letters of intent serve a useful role in the world of contacts and negotiations. An attorney is a useful ally when utilizing a letter of intent, as they can clarify any confusion and make the whole process as smooth as possible. If you need assistance with your letter of intent situation, the experienced business lawyers at Skjold Barthel can help you with your situation.