Sample Letter of Intent to Purchase

Author: Staff Writer

A letter of intent to purchase signifies the person who signed the letter's intent to enter into a more formal contractual agreement with another party to enter into a business transaction. These documents generally have four main parts. The first section discusses a confidentiality agreement between both parties. This means that if for some reason, the deal does not progress the proposed transactions of the deal must remain confidential. Secondly, the letter of intent should express both parties intent to continue serious negotiations. Third, the letter of intent states the basic terms of the deal. These terms do not need to be completely fleshed out, however, an outline of the terms should be present in the letter. Finally, the letter should include a deadline for closing the deal and the consequences for failing to complete the deal by the agreed upon date.

Sample Letter of Intent to Purchase 

John Doe
567 ABC Street
Purchase, Virginia 00000

November 20, 2010

Susan Smith, Owner
Computerama, Co.
345 Estate Lane
Purchase, Virginia 00000

RE: Letter of intent to purchase computers

Dear Ms. Smith:

The following basic terms are the terms in which we would be prepared to go forward with purchasing one hundred computers from your company.

1. John Doe intends to purchase from Computerama, Co. 100 RS Acer Laptop Computers.
2. The purchase price shall be the lower of $1,000 per computer or whatever better price that Computerama, Co. is able to extend to John Doe.
3. In order to secure the purchase, John Doe has paid 10% of the purchase price, which shall be promptly returned should the negotiations fail.
4. If the contract is not exacted by December 31, 2010 for any reason, Computerama, Co. or John Doe shall have the right to terminate negotiations.

The aforementioned terms and conditions serve as a letter of intent only. This document is not legally binding. The terms and conditions negotiated should remain confidential between the parties.

Very respectfully,
John Doe

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Works Cited

Wiesner, Donald A
"Illustrated negotiator's glossary"
Print.

AllBusiness
"What Is a Letter of Intent?"
www.AllBusiness.com



Expert Opinion 

Quote:  "The letter of intent is the buyer's promise to carry forward with the purchase, assuming the information discovered during due diligence confirms what information the buyer had been provided about the business prior to the letter of intent."

Source:  James Laabs; The Business Sale System: Insider Secrets to Selling Any Small Business
First American Pub. 2007. Print

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"Sample Letter of Intent to Purchase." Sophisticated Edge. N.p., n.d. Web. . <http://www.sophisticatededge.com/sample-letter-of-intent-to-purchase.html>.  

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