A letter of intent is an agreement between two businesses which provides the basis for a future or proposed agreement. This can also be drafted as a contract between two businesses known as heads of terms, rather than a letter. However, the effect of these two documents is the same.
Set out terms for a proposed agreement using this letter of intent (LOI) and give yourself more chance of succeeding and achieving your aims. Also called memorandum of understanding (MOU), this letter of intent includes details of the proposed agreement, pre-conditions, key obligations and has options to include legally binding obligations of confidentiality, exclusivity and non-solicitation.