A letter of Intent to purchase generates confidence between the buyer and seller. The purpose of the Letter of Intent is to state the reason of purchase, the negotiation terms with the buyer, the reason behind the purchase. They ideally save time and resources for both parties.
For every formal letter of intent, there is a standard format to be followed. Be it company or individual the letter of purchase act as a credible document for the actions taken further. Therefore there is a classic layout to be followed. The details are listed down
You must understand that the letter of Intent is normally a formal document for the specific actions to be taken by both buyer and seller. It is essential to write a letter as soon as you decide to buy the product. The purchasing terms are the important goals to be denoted in the letter. This will include time taken to deliver the products, product details, packaging details, due diligence, and payment methods. Always keep the tone polite and formal.
As both parties are drafting the process of verification through this letter, the intent letter can be used as legal evidence. In case, if any of the parties are not abiding by the purchasing term, you can use the intent letter to file the lawsuit against an individual or company. Therefore while using any words make sure they don’t backfire at you. Keep the letter short and simple. Using complicated legal language creates multiple problems in the process.
Finally, keep things open for possibilities as the agreement will be drafted only on the accepted proposals.
We here provide you various samples that will best fit in different scenarios. You need to customize the letter as per your requirements and needs as the following letters are only samples. You can understand the tone and the format clearly.
Company Name: ABC Private Limited
Address: 9668 Winchester Street
Owensboro, KY 42301
City: Owensboro
State: Kentucky
Subject: Letter of Intent to Purchase
Purchase Proposal: We take this opportunity to establish the intention to purchase for the software product from your organization The Tag Tech Private Limited, Arizona. The principal business activities include the purchase, updating existing software products, installing software manual distribution and complete support to run them successfully.
Our management systems are indeed looking for upgrade in the software as our customer has rapidly grown in the past two years. We at ABC Private Limited are intended to purchase the new DSS, ForgeNet and MI5 from your company as this will help us to furnish the datasheets.
We understand that this letter of intent will provide the required framework for the transactions as follows
Product: DSS, ForgeNet, MI5
Total Quantity: for 75 systems
Origin of the Good: Arizona
Destination Port: Kentucky Air Service
Payment Method: 70% of advance before the delivery
30% of the payment after installation
Delivery Terms: 30.07.2019
We look forward to working with the purchase proposal, that will benefit borth the entities.
Sincerely
ABC Private Limited
A letter of intent to purchase business usually happens as a non-legal binding terms between the buyer and seller. This is an agreement signed over the outline on the business principles and activities. The responsibilities are stated clearly protecting the individual rights of the companies.
Company Name: ABC Private Limited
Address: 8446 Hilltop Lane
Dothan, AL 36301
City: Dothan
State: Alabama 36301
Subject: Purchase of stock/Assets
This letter of Intent represents an offer from the ABC private limited to purchase the Tag Tech business under various terms and conditions referred in the Articles of Association. Apart from any of the non-Negotiation clause, this letter shall be confidential with the provision to the nominated representatives involved in the purchase. Also, this letter of intent will supersed any previous agreement signed between both the companies.
The letter of intent establishes ABC private limited as the Buyer to acquire the assets from the Tag Tech as the seller in the documents following henceforth. The buyer and seller are collectively known as parties and individually referred as party.
The purchase of the asset from the seller is provision to the business worth of $250000. By signing the agreement by both parties, the deposit of $75000 is immediately payble by the buyer. Under any circumstances, if the letter is not approved, the deposit shall be repaid by the buyer. During the closure of the deal the total cash of $175000 shall be paid through the seller’s financial account over Non-Disclosure agreement.
Yours Sincerely
Signed (ABC Private Limited) Date: 22.07.2019
Print Name: Zack Neilburg Title: Chief Coordinator, ABC Private Limited
Counter Signed by
Signed (The Tag Tech Private Limited) Date: 24.07.2019
Print Name: Sam Anderson Title: Chief Coordinator, The Tag Tech Private Limited
List Schedule is attached.
If you have decided to buy property either to build or to invest, the first thing that you need to draft is your letter of intent to purchase the land. This will create the referencing point where both the buyer and seller can make agreements over the outlining proposing terms. Also, the seller gets an opportunity to send back the letter reflecting his opinion over the purchasing terms.
Subject: A letter of intent to purchase the property with reference to our conversation held on 18.07.2019.
The purpose of the letter is to set some basic purchasing terms and conditions proposed by Mark Evangelist who shall be referred as the buyer of the certain property owned by Dr. Joey Thomson who is the seller. The terms shall proceed with an advanced Purchase agreement on approving the letter.
Property Address: The property is located at 7 Bay Meadows Road, Round Lake, IL 60073
Price: The purchase of the property is proposed at the price of $125000, of which 40% of the estimation which is $50000 shall be deposited on acceptance of the purchase agreement; the balance amount shall be paid before or during the closure of possession
Inspection: The buyer shall conduct the inspection of his own choice by accepting the purchase agreement. It can be related to plumbing, mechanical, electrical works, structural facilities and pest damage.
Closing Costs: The document and the registration cost shall be bear by the both part as per the traditional closing costs
Standard provision: The purchase agreement will on proceeding this letter is the pre-closure document. Hence the buyer can visit and get access to the home on the well
Stand Still: The seller shall not proceed with any negotiations on the land unless the buyer enters into the agreement of purchase within 72 hours of the acceptance of the agreement Or the buyer and seller agrees to sign on the document over abandoning the letter of intent
If you would like to proceed with the sale of the property mentioned above on general financial and settlement terms, please sign and return the copy of the Letter of Intent at the earliest.
Yours Truly
Mr. Mark Evangelist
The above letter reflect the mutual understanding that sets for the property negotiations that are mentioned above
Seller : Buyer:
Dr. Joey Thomson Mr. Mark Evangelist
Date of Acceptance
24.07.2019
The Letter of Intent for purchasing any goods or product from the company is simple. All you need to do is to clearly state the requirement, budget and the details regarding the delivery. The payment terms can be noted based on the previous discussions held through phone or email.
Company Name: ABC Private Limited
Address: 9668 Winchester Street
Owensboro, KY 42301
City: Owensboro
Country: Kentucky
Subject: Letter of Intent to Purchase
With respect to your proposal for me to purchase from your product line, we would like to offer my support to the project by way of this letter-of-intent. We offer the following as being a reasonable estimate of how much I would possibly spend and when the purchase would likely occur.
The purchase shall follow the needs of six month project cycle which is as follows:
| July | $4000 | August | $2500 |
| September | $2800 | October | $2000 |
| November | $3200 | December | $3000 |
The products shall reach the Kentucky through the air service by 31.07.2019. Also, as discussed over the phone call, an advance of 40% shall be paid on acceptance of the letter of Intent while the balance will be paid on the arrival of the products.
We hope the letter clear you the outline of the framework of the transaction.
Yours truly,
Name: Mark Evangelist
Business name: ABC Private Limited
The letter of intent to purchase the equipment usually summarizes the discussion held over the different needs and requirements. The letter shall state the outline of the description of the equipment, purpose and the proposed transactions. Following which the letter can be used for any billing and the policies for the equipment sales, service and replacement.
Company Name: ABC Private Limited
Address: 9668 Winchester Street
Owensboro, KY 42301
City: Owensboro
Country: Kentucky
Subject: Letter of Intent to Purchase of the Equipment
This letter of intent is addressed to Mr.Joey, The Tag Tech Private Limited, 8446 Hilltop Lane Dothan, AL 36301 and shall provide set of term and interest that we may agree upon. This letter therefore summarizes the discussion between the companies dated on 20.07.2019 with respect to the affirmed purchase.
The buyer intents to purchase the following equipment from The Tag Tech Private Limited with the corresponding specifications.
Furthermore, this letter will serve as the definitive sales agreement that both parties can agree upon.
Purchase Price: purchase price shall be discussed over agreeing to the letter of intent.
Delivery of Equipment: The seller shall deliver to the address mentioned above for the byer. The risk or damage during the delivery will by the passed on to the seller.
Warranties and Claims: The buyer shall agree up on to the warranty period of 1 year with the three main free services on the interval of quarterly period. An extended warranty period of Six months is proposed for the Bio-sensor alone.
Termination: The letter shall be terminated upon the following conditions
Yours Truly
Mr. Mark Evangelist
The above letter reflects the mutual understanding for the purchase of the equipment mentioned above. If so kindly undersign and return the copy of the letter of intent as soon as possible.
Seller: Buyer:
Dr. Joey Thomson Mr. Mark Evangelist
ABC Private Limited The Tag Tech Private Limited
Date of Acceptance
22.07.2019
Buying a real estate is absolutely a big decision to make and it is step forward in your life. Intent to purchase the real estate property gives the prospective sales. The letter is an minimized understanding of what are the terms in both buyer and seller are planning for the sale.
Letter of Intent to Purchase Real Estate
Company Name: XYZ Private Limited
Address: 9124 Winchester Avenue
Alabama, KY 42145
City: Alabama
Country: Alabama
Subject: A letter of intent to buy the real estate property with reference to our conversation held on 18.07.2019
Dear Dr.Joey Thomson,
This letter of intent is subjected to the definitive and mutually accepted agreement on the sale of the real estate property West Golden Star Court Fairhope, AL 36532. The undersigned offer from the purchase of the property is subjected to the terms and conditions referred as follows.
Seller Information: Dr.Joey Thomson, 9163 NE. Wayne St. Middleton, WI 53562
Buyer Information: Mr. Mark Evangelist 7524 Greenrose Street Glen Ellyn, IL 60137
Initial deposit: The proposed price for the real estate property mentioned above is $225000. The buyer shall therein pay the sum of $100000 as only a refundable deposit from the purchase price.
Second Deposit: An additional amount of $75000 will be paid as a non-refundable deposit after entering into the purchasing agreement.
Feasibility Period: the buyer gets a feasibility period of three months for performing all the due diligence subjecting to the property of purchase.
Closing Costs: The document and the registration cost shall be on the buyer and this will be included while entering the purchasing agreement.
Standard provision: The buyer and seller can use the letter of intent to continue the negotiations and purchase agreement on the acceptance of the letter.
Stand Still: The letter shall be withdrawn from the proceeding if the buyer have not paid the full amount after the feasibility period or if found that the seller continues further negotiations with other buyer before the feasibility period.
The above statements clearly define the mutual concern in proceeding with the purchse of this real estate property. If you are agreeing upon these terms kindly sign the letter and return back as soon as possible.
Yours Truly
Mr. Mark Evangelist
The above letter reflect the mutual understanding between both seller and buyer for the purchase of the property.
Seller: Buyer:
Dr. Joey Thomson Mr. Mark Evangelist
Date of Acceptance
24.07.2019
