Basic requirements for writing a letter of intent

Basic requirements for writing a letter of intent

meaning

A letter of intent is a consultative application between a state, a unit, an enterprise, and an economic entity and an individual to indicate a basic attitude or propose a preliminary idea to the other party before the formal signing of the treaty or agreement.

effect

The main purpose of the letter of intent is to convey the "intention", draw the attention of the other party for reference, and can constrain the actions of both parties to ensure the interests of both parties; the letter of intent can reflect the relationship in business work, and can ensure that the business develops in a healthy and beneficial direction; the letter of intent can Lay the foundation for the formal signing of an agreement or contract.

Characteristics

1. Negotiable. Write a letter of intent to use a tone of negotiation, without any mandatory. Sometimes the tone of hypothesis and inquiry is used.

2. Flexibility. The flexibility of the letter of intent is mainly in two aspects:

First, you can change your own ideas. After the letter of intent is issued, if the other party has a better opinion, it can be adopted directly, and partial changes or overall changes are possible;

Second, in the same letter of intent, a variety of options can be proposed for the other party to choose. Or put a few opinions or surveys on one of the items at the same time, let the other party compare and choose.

3. Temporary. The letter of intent is a record of the basic views of all parties in the negotiation process. Once a formal agreement is reached, the intentional mission is completed. The letter of intent does not have the legal effect as an agreement or a contract.

Writing

The general structure of the letter of intent: including the title, the attendance of the representatives, the time, the place, and the negotiation, the main matters of the business, the final signature and the specific date. Regardless of the way in which the letter of intent is written, its basic format and content are roughly the same as those in the agreement, and it is still a question of “why”, “what to do” and “how to do”.

Precautions

1. Adhere to the principle of equality and mutual benefit. Regardless of the size of the country, the size of the unit, and the amount of capital, they should be treated equally and treated equally; neither can they accommodate each other, nor can they impose their demands unprincipledly on each other.

2. It is necessary to be clear, to be sincere, to be humble and polite.

3. The content should be clear, the terms should be specific, the words should be accurate, and they should not be ambiguous and ambiguous.