What Is a Letter of Intent?
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Writing a letter of intent (“LOI”) is often necessary for business transactions. A LOI is often the first step in a business transaction and is typically followed by an Asset or Stock Purchase Agreement.
The Functions of a Letter of Intent
The letter of intent is often the first step to establishing a business relationship, acquiring property, or buying, selling, or merging entities. A LOI is typically non-binding as to the key terms of the deal.
These are the functions of a letter intent in business transactions:
- Establishes an exclusive relationship between the parties
- Proposes the “high level” terms for the deal
- Sets forth a timeline for deals and negotiations to occur
- Sets forth terms for confidentiality so that the entities can exchange information freely
Before entering into any business relationship, long-term or otherwise, it is always advisable to have Montgomery County business attorney for legal counsel.
The Benefits of Hiring an Attorney
Letters of intent can be highly complex with a lot of legalese requiring great attention to detail. Because we are experienced business lawyers, we can assist in preparing the documents for you, by drawing up drafts or reviewing the letter of intent to ensure that you and your associates are all on the same page.
Dossey & Jones, PLLC are business attorneys serving The Woodlands, TX and surrounding areas. We offer high-quality legal representation. Call us today!