Letter of Intent

Letter of Intent

The concept and characteristics of the letter of intent for cooperation is also called the initial draft. It refers to the documents with principled and directional opinions formed by the two parties or parties in the economic activities after initial contact with a certain cooperation item before entering the substantive negotiations. .
The letter of intent for cooperation is a document that records the willingness of the parties to cooperate and serves as the basis for further negotiations. It is not legally binding. It is mainly to express a number of principled opinions that the two parties have recognized each other after the initial negotiation, or to propose arrangements and ideas for future negotiations.
The characteristics of the letter of intent for cooperation are:
Consistency of purpose. The signing of the letter of intent for cooperation indicates that the two parties or parties have reached a consensus on a specific matter, have a common language, and have a total agreement. Based on their respective interests and requirements, on the basis of preliminary negotiations, the common purpose will be clarified, and further details will be discussed.
Content negotiation. The content of the letter of intent for cooperation is negotiating, and the status of the two parties or parties is equal. The units are of no small size, and the regions are friendly and negotiating, both inside and outside. Although both parties or parties have their own interests, it is necessary to reach a consensus through consultation before a letter of intent for cooperation can be concluded. The letter of intent of the cooperation letter has more tendencies, such as "hope", "practice", "will", "cooperate" and so on.
The generality of the expression. The letter of intent for cooperation, the principle of content comparison, and the language are highly summarized, so the specific details and detailed plans are still to be discussed further. The letter of intent for cooperation is expressed in terms of clauses, summarizing several principled opinions, stipulating how to do the next step, when to reach an agreement or sign a contract, which is the basic requirement of the letter of intent for cooperation.
The temporary nature of the effect. The letter of intent for cooperation is a phased product that only works after the initial contact and when the agreement or contract is signed. Once the agreement or contract is signed, the letter of intent for cooperation completes its historical mission. Temporary and short-term is a distinctive feature of the letter of intent for cooperation.
Not legally binding. The letter of intent for cooperation does not have legal effect, it only acts as a memo, and urges the parties to fulfill their promises. After the signing of the letter of intent, if one party fails to fulfill its own promises, the cooperation between the two parties will be stranded. This is only a moral loss of trust, and it is generally difficult to pursue legal responsibility. The economic contract has legal effect. The letter of intent for cooperation cannot be equated with the contract.
The classification of the letter of intent for cooperation can be divided into different categories from different perspectives.
From the scope: international letter of intent for cooperation, letter of intent for cooperation between provinces and cities, between regions, between departments or units, between enterprises and enterprises, can also sign a letter of intent for cooperation.
From the content: science and culture exchange and cooperation letter of intent; economic and technological cooperation cooperation letter of intent; technical equipment introduction cooperation letter of intent; new product development cooperation letter of intent; engineering infrastructure cooperation letter of intent; product purchase and sale cooperation letter of intent;
There are three forms of signing:
1 single sign. That is, the party signing the letter of intent for cooperation shall sign the file in duplicate, and then the party to the cooperation shall sign and approve the copy on the copy and return it to the other party, even if the signing is completed.
2 double-checked. That is to say, the joint signing ceremony, the detailed title and name of the representatives of both parties are issued on the letter of intent for cooperation, and the parties sign at the same time, and then each one holds a copy. This form is more solemn. Important cooperation intentions are generally ceremonial, but the effectiveness is no different from other forms.
3 exchange style. This is the way the two sides exchange their letters to express their intention to cooperate. The form is the same as the "exchange of text" in diplomacy, and the content is a cooperative matter, which is still a kind of cooperation letter of intent.
The format of the letter of intent for cooperation letter of intent generally includes the title, head, body and tail.
title. The title of the cooperation letter of intent often has three ways of writing: 1 simple writing, only write "cooperative letter of intent".
2 The contents of the letter of intent for cooperation are summarized in the title. For example, “About the cooperation letter of intent of the XX locomotive production group”, some “××Technology jointly form a letter of intent for cooperation and cooperation”, which is more specific than the letter of intent for cooperation.
3 Similar to the official title, there is a summary of the names of the two parties and the letter of intent for cooperation. For example, the Municipal Chemical Industry Bureau jointly developed the Chemical Industry Company and the XX Chemical Industry and Commerce Bureau to jointly develop a letter of intent for cooperation in chemical products.
capital. The first part should indicate the name of the cooperation unit, and some should indicate Party A or Party B in parentheses after the name. Concisely and succinctly explain the purpose of signing the letter of intent, follow the principles, and what is the intention. At the end of the first paragraph, it is said that "the intention is as follows" or "by friendly negotiation, signing this letter of intent for cooperation" to transition to the main body of the text.
main body. The letter of intent for cooperation is expressed in terms of clauses, and the opinions of the consensus are listed in a logical order. The letter of intent for trade exchanges and cooperation should also draw up the next work schedule, when and where to meet again, when to sign the agreement or contract.
Tail. At the end, the full name of the letter of intent to sign the cooperation letter, the official seal shall be affixed, and the person who participates in and signs the letter of intent for cooperation shall sign and seal the time of signing.
The writing points of the letter of intent should not show our requirements for key issues. As mentioned above, the letter of intent for cooperation only indicates the willingness and tendency of the two parties to a project, rather than the complete confirmation of the project, and the understanding of each other's situation needs to be further deepened. Therefore, when writing the project cooperation letter of intent, Our requirements for the key issues in the project should not be written, so that we can move forward and retreat and take the initiative when we further negotiate.
Any problem that we need to solve by our superiors or other departments cannot be written into the letter of intent for cooperation. The establishment of a project will inevitably involve many relevant departments, and it is by no means a project organizer can solve it alone. Therefore, caution must be exercised in the preparation of the project cooperation letter of intent, and inappropriate commitments should not be included in the letter of intent for cooperation.
Do not write intent clauses beyond our scope of work, nor write content that is contrary to our current policies and regulations.
Think carefully, use words to be accurate, especially don't use affirmative words casually, especially when it comes to the rights and interests of both parties. Be sure to use affirmative words with caution so that there is room for it. Therefore, it is necessary to use more tone of negotiation and more flexible words. The language is peaceful and flexible. If you use “as much as possible”, “appropriate”, “can”, etc., never use “must”, “should”, “ Otherwise, the term is used.
It is necessary to strictly distinguish the difference between the letter of intent and the contract. The letter of intent for cooperation is only a preliminary concept, and it is the forerunner of signing the contract. The signing of the contract is the result of the development of the letter of intent for cooperation. It is not advisable to write the content that suits the contract, so as not to use the letter of intent as a contract.