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This agreement is most often used in transactions involving a purchase. Sometimes two parties will know that they want to do a business deal together, but they aren't ready to sign an actual agreement. For example, they may agree that one party will sell his or her business for a certain price, but they do not yet agree on who will take on certain liabilities of the business. The parties can sign this document to show each other a good faith intention to work out a deal. It can also help parties get on the same page as to what they expect from the purchase.

Understanding what a Letter of Intent is and when to use them is a bit confusing. But basically, this letter just means you are serious about continuing towards a purchase and that you want the other party to stop entertaining other offers. Our Letter of Intent template is suitable for all states.

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