Free Letter of Intent

A Letter of Intent is used to formally affirm your intentions to enter serious negotiations for the transfer of, or interest in a company or corporation. This Letter of Intent will define the buyers, sellers, company or interest for transfer, and the intended payment method and price. In addition, you will be able to define an expiration date and an exclusive negotiations period as well as any special warrantees you deem necessary.

A Letter of Intent is not a binding contract. Any language which promises certain actions should be avoided. The letter should outline the wishes of the buyers and sellers as they intend to work toward final negotiations. Any intentions outlined in the letter should not be binding until a final transaction agreement or contract is signed.

Read over the Letter of Intent thoroughly. If you want to make changes to the letter beyond what you can define in the answers you've provided, you can do this after you've finished the interview process. Make sure the Letter of Intent reflects your wishes and intentions for the negotiation period.

Once the Letter of Intent accurately reflects your intentions, you can either print sign your name to the bottom of the document and mail it to the office of the addressee, or you can use Rocket Lawyer's easy e-signing through the Document Manager. If you choose to hand sign the document and mail it, it may be a good idea to send the Letter of Intent by certified mail with a certificate of receipt. If the addressee accepts the intentions of the letter, they should sign the letter and return the document to you by e-signature or mail.

Use this section of the Letter of Intent to list any specific warrantees you would like to make to the addressee. Some examples are listed below.

Maintaining Employees.

When a company is sold or majority interests are purchased, it is not uncommon to give warrantees to the seller that the buyer intends to maintain any employment contracts under the current corporation. An employee warrantee could read: �The buyer, should a final agreement be reached, intends to maintain the employment of any employees currently working for (company name)".

Transfer of Clients.

If the final transaction will likely include a transfer of clients from seller to buyer, you may wish to outline those intentions here. An example clientele warrantee could read: "The seller, should a final agreement be reached, intends to transfer X% of clients to the buyer".

Logo and Copyright.

If the buyer requests the use of the seller's company logo or other copyright information, you may choose to state your intentions of buying the copyright material in the Letter of Intent. The same may be applied in reverse if the seller wants to reserve the logo or copyrighted material. For instance: �The buyer, should a final transaction be reached, intends to have the legal right to use, reproduce, and alter the seller's company logo and all copyright information".