A purchaser and seller will intend to outline the specifics of a proposed sale. When this happens, they will want to agree about the specifics in writing. To do this, they execute a letter of intent outlining what they have agreed upon. The letter of intent sets out the basic terms of the proposed purchase and sale of the business. It also allows the parties to move forward with some degree of certainty of the transaction.
Letters of intent can become quite over cumbersome if not dealt with. Letters of intent should also contain a summary of all the terms and conditions agreed by all parties. It should also contain the items they will determine later.General wisdom suggests tabling a hybrid form of a letter of intent. This is a letter that is agreeing to terms in both a binding and non-binding way. This type of letter is to ensure the parties are in agreement in principle.
Counsel to the other party should draft the letter of intent. This is true if you are a purchaser or a vendor. They can also draft the letter quickly to express the interest of the other side with an aim to close the transaction efficiently.