Business Letter of Intent

What is a business letter of intent?

A letter of intent template is a letter used by one party to invite the other party to sign a contract, enter a transaction or start cooperation in the UK. This sample for letter of intent can be used for private and business negotiations between individuals, companies, partnerships and startups operating in the UK.

When should you use this sample letter of intent?

The present sample for the letter of intent is being used as the first step in the negotiation process between individuals and businesses across the UK, including:

Providing Services

Before signing an agreement for the provision of professional services, the parties should first discuss the key elements of a contractual arrangement, including the scope of work, fees, duration and other warranties. The parties may also wish to explore each other’s profiles, qualifications and backgrounds before starting cooperation.

Business Acquisition

If you are an investor willing to acquire a part or all of the business operating in the UK, the first step is to send this letter including conditions of acquisition. As a future business owner, you may wish to know more about the practical side of a business you are planning to purchase, including:

• financial statements and accounting;
• profitability;
• ongoing legal procedures, etc.

A sample letter of intent is an initial step that helps to summarise your intent of a business purchase in a professional and compliant way.

Strategic Partnership or Cooperation

If you are planning to start a joint venture or simply explore possibilities of cooperation with other contractors, providers or businesses across the UK, having this sample letter of intent is a must. It defines a clear framework for future negotiations by setting clear deadlines and ensuring confidentiality.

Business Lease

If you are planning to start a new business, renting out a retail space, office or warehouse is the first step for most offline businesses nowadays. The real estate market in the UK offers a large selection of commercial property ready to be used for doing business. If you want to rent a specific commercial property, it is better first to send this letter of intent sample to a potential landlord enquiring about:

• availability of property;
• suggested monthly rent;
• property condition, etc.

Other Contracts

This letter of intent sample can also be used for the negotiation process for:

• tenancy and lodger agreements;
• supply of goods contracts;
• performance of the work contractors

The letter of intent template does not replace the future contract and does not impose any obligations or responsibilities towards either party involved.

What are the main features of this letter of intent sample?

By customising this letter template with FasterDraft, you get the document with the following benefits:

• a template that is suitable for negotiations of various types of business, commercial and private contracts;
• a document with a professional wording;
• a template created by qualified solicitors;
• a document that covers both exclusive and non-exclusive negotiations;
• a template that is ready for instant use immediately after the purchase;
• a document that aligns with common UK business practices

What should be included in this sample for letter of intent?

There is no statute law in the UK that applies to the letter of intent format. A standard letter of intent should usually include:

• Full identification details of the sender. In some of the cases, the recipient of this letter may not know a person or business sending this letter. Therefore, the text of the document must outline the full legal name, registered mailing or business address, contact telephone number and email address.
• Subject letter. The letter must outline the reason for sending this letter and if these negotiations are to be exclusive or non-exclusive. For example, if you are planning to send a letter of intent regarding entering a business lease agreement, you can state the following: “Business Lease Agreement – Invitation to Negotiations”.
• Details of Proposal. The most important part of the sample for letter of intent is to outline the main conditions of the proposal. These conditions may include price, duration, warranties, termination conditions, and non-compete clauses. It is also possible to enclose a draft of a proposed contract.
• Date & Signature. Once the letter is ready, it should be signed and dated by the sender.

How to customise this LOI (letter of intent) with FasterDraft?

To get a fully customisable letter template, follow these steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – PDF and Word.
4. E-sign the document.
5. Make a payment.

The letter is ready for instant download.