What you need to know about letters of intent

Bringing together my posts on letters of intent in one ‘executive summary’.

When, how and whether you should use a letter of intent

This post draws on advice from a judge about whether a letter of intent is wrong in principle; if not, when it is appropriate to use one; what to do before it is sent; and what to do once it is sent.

Things to consider before you start

What is your purpose, your strategy, that means you need a letter of intent? Consider whether it is ok to use an LoI and whether you could avoid them.

You could consider whether a contract is better than a letter of intent, or if no contract is better!

The key risk is that the ‘full’ contract is never signed – most letters of intent are intended to be temporary stop-gap but sometimes they rumble on forever.  But you can also avoid disputes when using letters of intent by recognising its role as a ‘stepping stone’, creating a better letter and using it wisely.

Create a simple letter of intent

The typical letter of intent scores abominably low on the 10 essentials for a construction contract. Too much is missing.

A simpler letter of intent will speed up the negotiation process, be more precise and help you avoid disputes. You can write it in #Just500Words using my book or its accompanying sample.

Is it a contract?

This post considers the 5 legal essentials for any binding contract, plus whether it is marked ‘subject to contract‘ and whether there is enough certainty for the court to enforce it.

You can get even more information in my A to Z covering all sorts of aspects of letters of intent.

Using letters of intent successfully

Both before and after you send your letter of intent, this post has tips and links to videos to ensure you are using them wisely and sparingly.

What happens with letters of intent go wrong?

The impact will depend on your role. Are you:

• the client
• the contractor (provider)
• the contract administrator
• the funder
• the adviser.