Business

Letter of Intent (LOI)

A mostly non-binding LOI outlining key deal terms, with binding exclusivity and confidentiality.

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Template
LETTER OF INTENT

[DATE]

This Letter of Intent ("LOI") is between [PARTY A] and [PARTY B] regarding [proposed transaction].

1. PROPOSED TRANSACTION. The parties intend to [acquire / purchase / partner] on the following principal terms: [price], [structure], [key terms].

2. DUE DILIGENCE. Party B may conduct due diligence for [30] days with reasonable access to records.

3. EXCLUSIVITY (BINDING). For [30] days, the parties will negotiate exclusively and will not solicit competing offers.

4. CONFIDENTIALITY (BINDING). The existence and terms of these discussions are confidential.

5. NON-BINDING. Except for Sections 3 and 4, this LOI is non-binding, creates no obligation to complete the transaction, and is subject to a definitive written agreement.

6. EXPENSES. Each party bears its own costs.

7. GOVERNING LAW. [STATE].

PARTY A: _____________________  DATE: __________
PARTY B: _____________________  DATE: __________

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This free template is provided by ClauseAudit for general informational purposes and is not legal advice. Have it reviewed before use. Replace all [BRACKETED] placeholders.

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This free template is general information, not legal advice. Have it reviewed before use.