A letter of intent is an agreement between two businesses that 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 a 'memorandum of understanding' (or 'MOU' for short), 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.