What Is a Non-Binding Letter of Intent?
When you enter into a contract with another party you are bound by law to meet the requirements of that contract and if you deviate from that contract you may be liable for damages. A letter of intent is a document that you use to state that you will work towards a contract and outline an idea of what the terms of that contract may be once it is signed, however you generally wish that what has been outlined remains non-binding and un-enforceable in law.
A letter of intent is usually used where there will be work conducted prior to a contract being created and this could be anything from property surveys to business due diligence depending on the nature of the non-binding letter of intent. After all you would not agree to buy a property without doing the surveys that need to be done or having remedial work conducted to protect yourself, you would want to be able to back out of the agreement if that survey found problems or if the work was not conducted as agreed hence the need for a non-binding letter of intent.
Writing a Non-Binding Letter of Intent
A search online will quickly find you a non-binding letter of intent template that you could adapt for your needs. Care should be taken however as not every sample non-binding letter of intent is as non-binding as they seem and a just changing a few words could easily change the whole nature of the document. So take extreme care when you select and change a non-binding letter of intent sample or you could unintentionally create a binding document that could be enforced through the courts.
There are many cases where companies have been taken to court by unhappy parties who have then successfully argued that non-binding letters of intent are in fact binding due to the language used within them; even if there is a clear statement that the agreement is non-binding.
How We Can Keep Your Letter of Intent Non-Binding
A specialized letter of intent service such as us fully understands how important it is to protect your business and to ensure that your letter of intent remains non-binding. We understand how a few words can cause your non-binding letter of intent to become enforceable in law and we know how to avoid using those words and phrases. If you want to ensure your own full protection, use our highly experienced skilled letter of intent writers to write your non-binding letter of intent no matter what the purpose.