What to keep in mind
Address price framework, scope, due diligence, exclusivity, confidentiality, schedule, costs and governing law.
Unclear drafting can unexpectedly create binding duties or disputes over withdrawal.
Distinctions often confused
A letter of intent is not necessarily a binding agreement to complete the acquisition.
Frequently asked questions
Can a letter of intent contain binding clauses?
Yes, for example confidentiality or exclusivity, if properly specified.
Can negotiations end after a letter is signed?
That depends on which commitments were made legally binding.
Informational content. It is not a substitute for professional advice.