Letter of Intent

When you're negotiating a business deal and the negotiation is getting serious, use a Letter of Intent. It helps protect everyone's rights and responsibilities, as well as solidifying the relationship between both parties. You'll want to get the letter in writing before the final negotiations, so that both parties know what to expect.

Use a Letter of Intent if:

• You are ready to enter serious negotiations for the sale or purchase of a whole or part of a company or corporation and you would like to define your intentions formally in writing.
• You are negotiating the purchase of a company or interest in a company and want to exclude the seller from negotiating with another party.