Letter Of Intent: A Non- Binding Contract?
A letter of intent can be referred to as a step taken before getting bound in a contract. It wouldnt be wrong to name a letter of intent a non-binding contract. This non-binding contract consists of all the terms that both contract parties have agreed upon. As the name delineates, the letter of intent basically represents the intention of both the parties towards the contract. You dont have to worry if you are not familiar to writing a letter of intent. You can search the internet for a sample of letter of intent and make one for yourself.
Letter of Intent is usually used by business and corporations before they enter a legally binding contract. A letter of intent states all the terms, conditions & any other additional information that will be the part of the formal agreement later. The letter of intent basically showcases the intention of both the parties towards the contract so that if there is any disagreement on anything it is represented before the processing of the formal contract.
You can use a letter of intent in different kinds of situations. If you are a student and you wish to form a society, you can opt for writing a letter of intent to the authorized student affairs department of your school or university. In this case the letter of intent will most probably contain the following information, why do you wish to form the society? How many members are you planning to have? What are the requirements in terms of financial budget etc? What are the membership requirements? And the list goes on. No matter what the situation, the purpose of the letter of intent will remain the same i.e. stating and clarifying the intent of the party that writes the letter.
Another sector where a letter of intent is usually used is the real estate sector. When the purchaser selects the home he wishes to buy, he begins the buying process by writing a letter of intent to the seller. If the seller agrees to the intention of the buyer, he takes the house off from his selling lists and starts the formal processing of a legal selling contract.
Search for a sample letter of intent online and start making your own. Who knows you might need to write one in the coming future.
