
Letter of intent
- Customisable to your needs
- Encourages parties to agree key terms
- Quick and easy to complete
This letter of intent (also known as a 'heads of terms', ‘memorandum of understanding’ or ‘heads of agreement’) will allow you to set out the key commercial terms of any early business negotiations you have agreed with someone outside your business.
A signed letter of intent is not usually legally binding, but it can help with discussing and negotiating a business agreement, as the key points that are agreed will be included in the legally binding contract.
Agreeing a letter of intent can give parties the reassurance that a legally binding commercial deal between them is possible, as it is an important initial step in agreeing a deal.
This document is also available as part of our Business collaborations toolkit, which will take you through the process of entering into a business collaboration and provide guidance on protecting your position.
Q&A
When should I use this document?
Use this document when you have started business negotiations with someone outside your business to record the key terms you agree.
What does this document cover?
This letter sets out the basic terms of the proposed business deal, including necessary approvals, pre-conditions, key commercial terms and the parties’ key obligations.
Why do I need this document?
This letter sets out clearly the key terms that you have agreed in your initial business negotiations, and will give both parties the confidence to continue to finalise a deal.
Where can I find out more?
For further guidance on agreeing a letter of intent, see Signing a letter of intent.
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