Letters of Intent Fundamentals
Letters of intent are a popular and useful vehicle to further negotiations in complex business transactions. However, letters of intent can be traps for the unwary, binding parties to obligations to which they may never have intended to be bound. This teleconference will explore the benefits and risks of letters of intent and how best to protect parties from unintended consequences. This teleconference will also provide and examine samples of typical provisions from letters of intent.
I. What is a Letter of Intent?
A. When is it a binding agreement?
B. When is it not a binding agreement?
C. Can it be binding in part and not binding in part?
II.Why Use a Letter of Intent?
A. Purposes when binding
B. Purposes when not binding
III. Drafting Issues with Letters of Intent
A. Is it binding or not?
B. Typical provisions