Free Letter of Intent (LOI) Template: Terms, Timeline & Next Steps

Party A: [Full Name / Company Name]

Address: [Address]

Party B: [Full Name / Company Name]

Address: [Address]

1. "Purpose"

"The purpose of this LOI is to outline the preliminary understanding between the Parties regarding" [brief description of intended transaction or agreement – e.g., potential business partnership, asset purchase, investment, etc.].

2. "Proposed Terms"

"The Parties intend to negotiate and enter into a definitive agreement based on the following terms:"

• $"Term" 1 $"[Term description]"
• $"Term" 2 $"[Term description]"
• $"Term" 3 $"[Term description]"

"(Additional terms may be included as needed.)"

3. "Confidentiality"

"Both Parties agree to maintain the confidentiality of this LOI and any related discussions, documents, or information unless otherwise agreed in writing."

5. "Non-Binding Nature"

"This LOI is non-binding and does not create any legal obligation on either Party, except for Sections 3 (Confidentiality), 4 (Exclusivity), and 6 (Governing Law), which shall be binding."

6. "Governing Law"

"This LOI shall be governed by and construed in accordance with the laws of" [State/Country].

7. "Good Faith Negotiations"

"The Parties agree to engage in good faith negotiations to finalize a mutually acceptable definitive agreement."

"IN WITNESS WHEREOF, the Parties have executed this Letter of Intent on the date first written above."