Letters of intent help you start business deals, partnerships, and agreements in a clear way. They show what you plan to do without making a legal promise yet. Many people find these letters hard to write because they need to be specific but not too binding.
This guide gives you 15 examples of letters of intent for different situations. Each one follows a good structure that you can copy for your own needs. Use these as starting points to make your own letter that fits what you want to say.
Non-Binding Letters of Intent Samples
Here are 15 letter of intent samples to help you start various types of business agreements.
1. Business Acquisition Letter of Intent
[Date]
Mr. John Smith
Chief Executive Officer
ABC Corporation
123 Business Avenue
New York, NY 10001
Subject: Non-Binding Letter of Intent for Acquisition of ABC Corporation
Dear Mr. Smith,
This letter outlines the main terms under which XYZ Enterprises, Inc. (“Buyer”) would consider acquiring ABC Corporation (“Seller”).
This letter is not legally binding except for the sections on confidentiality, exclusive dealings, and governing law. The final terms will come from additional talks and a formal agreement.
Proposed Transaction
The Buyer plans to purchase all shares or assets of the Seller for $10,000,000, to be paid as follows:
- $8,000,000 in cash at closing
- $2,000,000 in Buyer’s common stock
Due Diligence
After signing this letter, the Buyer will start checking the Seller’s records, contracts, and assets. The Seller agrees to help with this process and provide all needed documents.
Conditions
This deal depends on:
- Finishing due diligence to the Buyer’s satisfaction
- Getting needed approvals from both companies’ boards
- Getting any needed government approvals
- No big changes in the Seller’s business before closing
Timeline
- Due diligence period: 45 days from this letter
- Final agreement: Within 30 days after due diligence ends
- Closing: Within 30 days after signing the final agreement
Confidentiality
Both parties agree to keep all shared information private unless required by law.
Exclusive Dealings
For 90 days after signing this letter, the Seller will not seek or accept offers from other parties.
Expenses
Each party will pay its own costs related to this deal.
Governing Law
This letter follows the laws of New York State.
If these terms are acceptable, please sign below to show your agreement.
Sincerely,
Jane Johnson
Chief Executive Officer
XYZ Enterprises, Inc.
Accepted and Agreed:
________________________
John Smith, CEO
ABC Corporation
Date: ________________
2. Real Estate Development Letter of Intent
[Date]
Mrs. Sarah Williams
Property Owner
456 Land Avenue
Portland, OR 97201
Subject: Non-Binding Letter of Intent for Real Estate Development Project
Dear Mrs. Williams,
This letter shares the basic terms under which Green Development LLC (“Developer”) would like to develop your property at 456 Land Avenue, Portland (“Property”).
This letter is not legally binding except for the sections on confidentiality and exclusivity period. A formal agreement will contain the final terms.
Project Overview
The Developer plans to build a mixed-use building with:
- 60 apartment units
- 15,000 square feet of retail space
- Underground parking for 100 cars
Financial Terms
The Developer offers:
- Purchase price of $3,500,000 for the Property
- 5% deposit upon signing a formal agreement
- Full payment at closing
Due Diligence
The Developer will need 60 days to check:
- Property title
- Environmental status
- Zoning rules
- Market study results
Conditions
This project depends on:
- Clean property title
- Getting all building permits
- Securing project financing
- Favorable environmental tests
Timeline
- Due diligence: 60 days from signing this letter
- Purchase agreement: 30 days after due diligence
- Closing: 45 days after signing purchase agreement
- Construction start: 60 days after closing
Exclusivity
You agree not to sell or lease the Property to others for 90 days while we work on this deal.
Confidentiality
Both parties will keep all project details private.
Expenses
Each party pays their own costs during this process.
Please sign below if you wish to move forward based on these terms.
Sincerely,
Michael Green
Managing Director
Green Development LLC
Accepted and Agreed:
________________________
Sarah Williams
Date: ________________
3. Joint Venture Letter of Intent
[Date]
Mr. Robert Chen
President
East Tech Solutions
789 Innovation Drive
Boston, MA 02110
Subject: Non-Binding Letter of Intent for Joint Venture Partnership
Dear Mr. Chen,
This letter outlines the main terms for a joint venture between West Manufacturing Inc. (“West”) and East Tech Solutions (“East”).
This letter shows our serious interest but is not legally binding except for the confidentiality section. The final terms will be in a formal joint venture agreement.
Joint Venture Purpose
We plan to create a new company (“JV Co.”) to make and sell smart home devices combining West’s manufacturing skills and East’s technology.
Structure and Ownership
- JV Co. will be an LLC formed in Delaware
- West will own 51% and East will own 49%
- Both parties will have equal board representation
Capital Contributions
- West will contribute $2,000,000 in cash and manufacturing equipment valued at $1,000,000
- East will contribute technology and patents valued at $2,900,000
Management
- JV Co. will have a 6-member board (3 from each party)
- Day-to-day operations led by a CEO approved by both parties
- Key decisions require agreement from both parties
Intellectual Property
- Existing IP remains with original owner but is licensed to JV Co.
- New IP created by JV Co. will be jointly owned
Profit Sharing
- Profits will be shared based on ownership percentages
- Dividends paid quarterly after keeping needed operating funds
Timeline
- Due diligence: 45 days from signing this letter
- Final agreement: 60 days from signing this letter
- JV Co. formation: Within 30 days after final agreement
Confidentiality
Both parties agree to keep all shared information private.
Expenses
Each party will pay its own costs related to forming this joint venture.
If these terms sound good to you, please sign below to show your interest in moving forward.
Sincerely,
Lisa Martinez
CEO
West Manufacturing Inc.
Accepted and Agreed:
________________________
Robert Chen, President
East Tech Solutions
Date: ________________
4. Commercial Lease Letter of Intent
[Date]
Mr. David Thompson
Property Manager
City Center Properties
101 Downtown Plaza
Chicago, IL 60601
Subject: Non-Binding Letter of Intent to Lease Commercial Space
Dear Mr. Thompson,
This letter shares the basic terms under which Quality Retail Group (“Tenant”) would like to lease space at Downtown Plaza Mall (“Premises”).
This letter is not a binding lease agreement. The final terms will be in a formal lease agreement.
Premises
Approximately 3,500 square feet of retail space identified as Unit 204 at Downtown Plaza Mall, 101 Downtown Plaza, Chicago, IL 60601.
Lease Term
- Initial term: 5 years
- Option to renew: Two additional 5-year terms
Rent Terms
- Base rent: $28 per square foot annually ($8,166.67 monthly)
- Annual increases: 3% starting in year 2
- Security deposit: 3 months’ rent ($24,500)
Additional Costs
- Common area maintenance (CAM): Estimated $5 per square foot annually
- Tenant pays proportionate share of property taxes and insurance
- Tenant responsible for utilities in the Premises
Tenant Improvements
- Landlord allowance: $45 per square foot ($157,500 total)
- Tenant responsible for costs beyond allowance
- Landlord will provide empty “white box” with HVAC, plumbing, and electrical
Use
The Premises will be used as a clothing retail store.
Signage
Tenant may install storefront signage subject to landlord approval and mall guidelines.
Parking
Tenant employees and customers may use the mall’s parking facilities.
Timeline
- Lease signing: Within 30 days of this letter
- Construction start: Within 60 days of lease signing
- Estimated opening date: Within 120 days of construction start
If these terms meet your approval, please sign below to move forward with preparing a formal lease agreement.
Sincerely,
Jennifer Adams
Real Estate Director
Quality Retail Group
Acknowledged:
________________________
David Thompson
City Center Properties
Date: ________________
5. Merger Letter of Intent
[Date]
Ms. Emily Wang
Chief Executive Officer
Digital Solutions Inc.
555 Tech Boulevard
Seattle, WA 98101
Subject: Non-Binding Letter of Intent for Proposed Merger
Dear Ms. Wang,
This letter outlines the proposed terms for a merger between Cloud Services Group (“CSG”) and Digital Solutions Inc. (“DSI”).
This is not a binding agreement except for the sections on confidentiality, exclusivity, and expenses. The final terms will be in a definitive merger agreement.
Transaction Structure
The proposed transaction will be a merger of equals, with shareholders of both companies receiving shares in a newly formed holding company (“NewCo”).
Exchange Ratio
- DSI shareholders will receive 1.2 shares of NewCo for each DSI share
- CSG shareholders will receive 1.0 share of NewCo for each CSG share
Leadership and Governance
- Board: 10 directors (5 from each company)
- CEO: Current CSG CEO for first 2 years, then DSI CEO for next 2 years
- Chairman: Current DSI Chairman
- Executive team: Equal representation from both companies
Company Name and Headquarters
- Name: CloudDigital Solutions, Inc.
- Headquarters: Seattle, WA
- Additional offices maintained in both current locations
Due Diligence
Both companies will conduct mutual due diligence over a 60-day period.
Conditions to Closing
- Approval by both companies’ boards
- Shareholder approval
- Regulatory approvals
- Satisfactory due diligence results
- No material adverse changes
Exclusivity
Both companies agree not to seek or encourage other merger opportunities for 90 days.
Confidentiality
All information shared during this process will remain confidential.
Timeline
- Due diligence: 60 days from signing this letter
- Definitive agreement: 30 days after completing due diligence
- Closing: 90-120 days after signing definitive agreement
Expenses
Each party will bear its own expenses related to this transaction.
If these terms are acceptable, please sign below to indicate your agreement to proceed.
Sincerely,
Thomas Johnson
Chief Executive Officer
Cloud Services Group
Accepted and Agreed:
________________________
Emily Wang, CEO
Digital Solutions Inc.
Date: ________________
6. Supplier Agreement Letter of Intent
[Date]
Mr. Carlos Rodriguez
Supply Chain Director
Quality Manufacturing Inc.
888 Industrial Parkway
Detroit, MI 48201
Subject: Non-Binding Letter of Intent for Strategic Supplier Agreement
Dear Mr. Rodriguez,
This letter outlines the basic terms under which Global Parts Co. (“Supplier”) proposes to become a strategic supplier to Quality Manufacturing Inc. (“Manufacturer”).
This letter is not legally binding except for the confidentiality section. The final terms will be in a formal supplier agreement.
Supply Arrangement
Supplier will provide the following components to Manufacturer:
- Precision metal fasteners
- Specialized plastic moldings
- Custom electronic assemblies
Volume and Pricing
- Annual minimum volume: $2,500,000
- Initial pricing: As per attached Schedule A
- Volume discounts: 2% for annual purchases over $3,000,000
- Price adjustments: Annual review based on raw material costs
Quality Standards
- All components must meet ISO 9001 standards
- Supplier will provide quality certificates with each shipment
- Defect rate must not exceed 0.5%
Delivery Terms
- Lead time: 2 weeks for standard items, 4 weeks for custom items
- Shipping terms: FOB Manufacturer’s facility
- Delivery schedule: Weekly deliveries per Manufacturer’s forecast
Term and Renewal
- Initial term: 3 years
- Automatic renewal for 1-year periods unless notice given
- 90-day notice required for non-renewal
Inventory Management
- Supplier will maintain 30-day safety stock of key components
- Manufacturer will provide 90-day rolling forecast monthly
- Just-in-time delivery option available for additional fee
Technology Collaboration
Both parties agree to share technical information to improve components and reduce costs.
Next Steps
- Site visits to both facilities within 30 days
- Technical specifications finalized within 45 days
- Contract negotiations completed within 60 days
Confidentiality
Both parties agree to keep all shared information confidential.
If these terms meet your approval, please sign below to proceed with developing a formal agreement.
Sincerely,
Maria Sanchez
Business Development Director
Global Parts Co.
Acknowledged:
________________________
Carlos Rodriguez
Quality Manufacturing Inc.
Date: ________________
7. Partnership Letter of Intent
[Date]
Ms. Rachel Kim
CEO
Fitness Tech Co.
777 Health Boulevard
San Diego, CA 92101
Subject: Non-Binding Letter of Intent for Strategic Partnership
Dear Ms. Kim,
This letter outlines the basic terms for a strategic partnership between Wellness Nutrition LLC (“Wellness”) and Fitness Tech Co. (“FitTech”).
This letter is not legally binding except for the confidentiality provisions. The final terms will be in a formal partnership agreement.
Partnership Purpose
The partnership aims to create integrated fitness and nutrition solutions combining Wellness’s nutrition products with FitTech’s digital fitness platform.
Scope of Collaboration
- Co-branded nutrition and workout programs
- Integration of nutrition tracking into FitTech’s mobile app
- Joint marketing campaigns
- Cross-promotion to existing customers
Revenue Sharing
- 70% to the party whose product is being sold
- 30% to the referring party
- Quarterly settlements of all shared revenue
Marketing Commitments
- Joint marketing budget: $500,000 annually
- Each party to contribute $250,000
- Joint approval of all marketing materials
- Shared customer data (subject to privacy laws)
Exclusivity
- FitTech will not partner with other nutrition companies
- Wellness will not partner with other fitness technology companies
- Duration of exclusivity: 2 years
Term and Renewal
- Initial term: 2 years
- Option to renew for additional 2-year terms
- 90-day notice required for non-renewal
Intellectual Property
- Each party retains ownership of existing IP
- Jointly developed IP will be jointly owned
- Limited license to use partner’s trademarks
Timeline
- Integration planning: 30 days from signing this letter
- Technical integration: 90 days from signing this letter
- Market launch: Within 120 days of signing this letter
Confidentiality
Both parties agree to keep all partnership discussions and shared information confidential.
If these terms are acceptable, please sign below to express your intent to move forward with this partnership.
Sincerely,
Jason Parker
CEO
Wellness Nutrition LLC
Accepted and Agreed:
________________________
Rachel Kim, CEO
Fitness Tech Co.
Date: ________________
8. Distribution Agreement Letter of Intent
[Date]
Mr. Daniel Lee
Managing Director
Global Distribution Networks
333 Logistics Way
Miami, FL 33126
Subject: Non-Binding Letter of Intent for Distribution Agreement
Dear Mr. Lee,
This letter outlines the main terms under which SunTech Solar Products (“Manufacturer”) would appoint Global Distribution Networks (“Distributor”) as an authorized distributor.
This letter is not legally binding except for the confidentiality section. The final terms will be in a formal distribution agreement.
Products
Distributor will distribute the following SunTech products:
- Solar panels (all residential models)
- Solar inverters and batteries
- Solar water heating systems
- Solar installation accessories
Territory
Distributor will have rights to distribute in:
- United States (except California)
- Canada
- Mexico
Exclusivity
- Distributor will have exclusive rights in the assigned territory
- Exception: Manufacturer retains right to sell directly to national accounts
Purchase Commitments
- Minimum annual purchase: $1,500,000
- First-year target: $2,000,000
- Growth targets: 15% annual increase
Pricing and Payment Terms
- Wholesale discount: 30% off MSRP
- Additional volume discounts per Schedule A
- Payment terms: Net 30 days
- Currency: USD
Marketing Support
- Co-op marketing fund: 2% of purchases
- Training programs for Distributor’s sales team
- Access to Manufacturer’s marketing materials
- Quarterly marketing planning meetings
Product Support
- Technical training for Distributor’s staff
- Second-level technical support for customers
- Warranty processing support
Term and Renewal
- Initial term: 3 years
- Renewal option for two additional 3-year terms
- Performance review prior to each renewal
Timeline
- Product training: Within 30 days of signing final agreement
- Initial inventory order: Within 45 days
- Market launch: Within 60 days
Confidentiality
Both parties agree to keep all information shared during negotiations confidential.
If these terms are acceptable, please sign below to express your intent to proceed with a formal agreement.
Sincerely,
Amanda Chen
VP of Sales & Distribution
SunTech Solar Products
Acknowledged:
________________________
Daniel Lee
Global Distribution Networks
Date: ________________
9. Licensing Agreement Letter of Intent
[Date]
Dr. James Wilson
Director of Licensing
University Research Foundation
444 Academic Way
Boston, MA 02115
Subject: Non-Binding Letter of Intent for Technology Licensing
Dear Dr. Wilson,
This letter outlines the basic terms under which MedTech Innovations Inc. (“Licensee”) would license patent rights from University Research Foundation (“Licensor”).
This letter is not legally binding except for the confidentiality provisions. The final terms will be in a formal licensing agreement.
Licensed Technology
Patent rights to “Non-Invasive Glucose Monitoring System” as described in U.S. Patent Application No. 16/123,456 and related know-how.
License Scope
- Exclusive worldwide license
- Field of use: Medical devices for consumer and clinical use
- Right to sublicense with Licensor approval
Financial Terms
- Upfront license fee: $250,000
- Annual maintenance fee: $50,000
- Royalty rate: 5% of net sales
- Milestone payments:
- $500,000 upon FDA approval
- $1,000,000 upon first commercial sale
- $2,000,000 when annual sales exceed $10 million
Development Commitments
- Minimum R&D spending: $1 million annually for 3 years
- Development timeline with specific milestones per Schedule A
- Quarterly progress reports to Licensor
Patent Matters
- Licensee responsible for patent prosecution costs
- Licensee has first right to pursue infringers
- Joint approval for patent-related decisions
Improvements
- Licensee will own improvements it develops
- Licensor will own improvements it develops
- Cross-license of improvement patents
Publication Rights
- Licensor retains right to publish research
- 30-day review period for Licensee prior to publication
- Right to delay publication up to 60 days to file patents
Term and Termination
- Term: Until expiration of last valid patent claim
- Termination for material breach with 60-day cure period
- Licensee can terminate with 90 days’ notice
Confidentiality
Both parties agree to keep confidential all information shared during negotiations.
If these terms are acceptable, please sign below to express your intent to move forward with a formal agreement.
Sincerely,
Elizabeth Brown
Chief Technology Officer
MedTech Innovations Inc.
Accepted and Agreed:
________________________
Dr. James Wilson
University Research Foundation
Date: ________________
10. Investment Letter of Intent
[Date]
Mr. Akira Tanaka
Chief Executive Officer
GreenEnergy Startup Inc.
222 Innovation Street
San Francisco, CA 94105
Subject: Non-Binding Letter of Intent for Equity Investment
Dear Mr. Tanaka,
This letter outlines the basic terms under which Impact Venture Partners (“Investor”) proposes to invest in GreenEnergy Startup Inc. (“Company”).
This letter is not legally binding except for the exclusivity and confidentiality provisions. The final terms will be in a formal investment agreement.
Investment Amount
Investor proposes to invest $3,000,000 in exchange for equity in the Company.
Valuation and Equity
- Pre-money valuation: $12,000,000
- Post-money valuation: $15,000,000
- Equity stake: 20% of fully diluted shares
Investment Structure
- Series A Preferred Stock
- 1x liquidation preference, non-participating
- Conversion to common stock at investor’s option
Board Composition
- 5-member board
- 2 seats for founders
- 1 seat for Investor
- 1 seat for independent director (mutually agreed)
- 1 seat reserved for future strategic investor
Investor Rights
- Pro-rata rights in future funding rounds
- Information rights (monthly financials, annual budgets)
- Right of first refusal on share transfers
- Registration rights for public offerings
Use of Funds
- Product development: $1,500,000
- Marketing and sales: $900,000
- Operations: $600,000
Conditions to Closing
- Satisfactory completion of due diligence
- No material adverse changes
- Board and shareholder approvals
- Customary legal documentation
Exclusivity
Company agrees not to seek or accept other investment offers for 60 days.
Timeline
- Due diligence: 30 days from signing this letter
- Definitive agreements: 45 days from signing this letter
- Closing: Within 60 days of signing this letter
Confidentiality
Both parties agree to keep all information shared during this process confidential.
If these terms are acceptable, please sign below to express your intent to proceed with this investment.
Sincerely,
Sophia Martinez
Managing Partner
Impact Venture Partners
Accepted and Agreed:
________________________
Akira Tanaka, CEO
GreenEnergy Startup Inc.
Date: ________________
11. Research Collaboration Letter of Intent
[Date]
Professor Sarah Johnson
Department of Computer Science
National Tech University
111 Campus Drive
Cambridge, MA 02139
Subject: Non-Binding Letter of Intent for Research Collaboration
Dear Professor Johnson,
This letter outlines the basic terms for a research collaboration between AI Solutions Corp. (“Company”) and National Tech University’s Department of Computer Science (“University”).
This letter is not legally binding except for the confidentiality provisions. The final terms will be in a formal research agreement.
Research Focus
Joint research on “Machine Learning Applications for Climate Change Prediction” as detailed in Attachment A.
Duration
- Initial term: 2 years
- Option to extend for 1 additional year by mutual agreement
Financial Support
- Company will provide $500,000 in research funding
- Paid in quarterly installments of $62,500
- Funds to cover researcher salaries, equipment, and materials
Research Team
- University: 2 faculty members, 3 PhD students
- Company: 2 senior researchers, 1 project manager
- Joint research committee with equal representation
Intellectual Property
- Background IP remains with original owner
- Jointly developed IP will be jointly owned
- University receives non-exclusive license to use results for academic purposes
- Company receives commercial license to joint IP
Publication Rights
- University may publish research results
- Company has 30-day review period prior to submission
- Right to delay publication up to 90 days for patent filing
Equipment and Facilities
- Company will provide specialized AI hardware
- University will provide lab space and basic equipment
- Shared access to computing resources
Reporting
- Quarterly progress reports
- Joint research meetings monthly
- Final comprehensive report at project completion
Confidentiality
Both parties agree to keep research methods and unpublished results confidential.
If these terms are acceptable, please sign below to express your intent to proceed with this collaboration.
Sincerely,
David Reynolds
Research Director
AI Solutions Corp.
Accepted and Agreed:
________________________
Professor Sarah Johnson
National Tech University
Date: ________________
12. Franchise Letter of Intent
[Date]
Ms. Olivia Bennett
Prospective Franchisee
789 Main Street
Austin, TX 78701
Subject: Non-Binding Letter of Intent for Franchise Opportunity
Dear Ms. Bennett,
This letter outlines the basic terms under which Fresh Burger Inc. (“Franchisor”) would grant a franchise to Olivia Bennett (“Franchisee”).
This letter is not legally binding except for the confidentiality section. The final terms will be in a formal franchise agreement.
Franchise Grant
Franchisor offers Franchisee the right to operate a Fresh Burger restaurant using Franchisor’s system, trademarks, and trade secrets.
Location
- Territory: North Austin area
- Specific location to be approved by Franchisor
- Protected territory: 3-mile radius from approved location
Financial Terms
- Initial franchise fee: $45,000
- Royalty fee: 6% of gross monthly sales
- Marketing contribution: 2% of gross monthly sales
- Initial investment range: $350,000 – $500,000 (excluding real estate)
Term and Renewal
- Initial term: 10 years
- Renewal option for two additional 10-year terms
- Renewal fee: 50% of then-current franchise fee
Training and Support
- Initial training: 4 weeks at corporate headquarters
- On-site training: 2 weeks at opening
- Ongoing support from designated franchise consultant
- Operating manuals and proprietary software
Development Timeline
- Site selection: Within 90 days of signing franchise agreement
- Lease execution: Within 120 days
- Construction start: Within 180 days
- Opening: Within 12 months
Operations Requirements
- Adherence to operating manual standards
- Participation in system-wide promotions
- Regular store upgrades (every 5 years)
- Annual conference attendance
Transfer and Assignment
- Transfer fee: $15,000
- Franchisor has right of first refusal
- Transferee must meet Franchisor’s qualifications
Confidentiality
Franchisee agrees to keep all system information confidential.
If these terms are acceptable, please sign below to proceed with the application process and receive the Franchise Disclosure Document.
Sincerely,
Kevin Patterson
Franchise Development Director
Fresh Burger Inc.
Acknowledged:
________________________
Olivia Bennett
Date: ________________
13. Construction Project Letter of Intent
[Date]
Mr. Frank Miller
Project Owner
City Community Center
555 Main Street
Portland, OR 97201
Subject: Non-Binding Letter of Intent for Construction Services
Dear Mr. Miller,
This letter outlines the basic terms under which Quality Builders Inc. (“Contractor”) would provide construction services for the City Community Center expansion project (“Project”).
This letter is not legally binding except for the confidentiality provisions. The final terms will be in a formal construction contract.
Project Scope
Construction of a 15,000-square-foot addition to the existing community center including:
- Multipurpose gymnasium
- Four meeting rooms
- Kitchen facilities
- Outdoor covered patio
- Additional parking
Contract Price
- Guaranteed Maximum Price (GMP): $4,200,000
- Contingency amount: $210,000 (5% of GMP)
- Contractor fee: 8% of cost of work
Payment Terms
- Monthly progress payments based on completed work
- 10% retainage until substantial completion
- 5% retainage until final completion
- Final payment 30 days after completion
Project Timeline
- Pre-construction services: 45 days
- Construction period: 10 months
- Substantial completion: December 15, 2023
- Final completion: January 31, 2024
Construction Documents
Architectural plans dated March 15, 2023, prepared by Johnson Architects.
Changes and Extras
- Change orders require written approval
- Markup on change orders: 12%
- Owner-requested changes extended the schedule
Insurance and Bonds
- Contractor to provide builder’s risk insurance
- Performance and payment bonds required
- General liability coverage: $5 million
Warranty
- One-year warranty on all workmanship
- Pass-through of all manufacturer warranties
- 24-hour response time for warranty issues
Subcontractors
- Major subcontractors subject to Owner approval
- Minimum 30% local subcontractor participation
- Contractor responsible for all subcontractor work
If these terms are acceptable, please sign below to express your intent to proceed with contract negotiations.
Sincerely,
George Washington
Project Director
Quality Builders Inc.
Acknowledged:
________________________
Frank Miller
City Community Center
Date: ________________
14. Service Agreement Letter of Intent
[Date]
Ms. Grace Wong
Operations Director
TechCorp Industries
777 Corporate Parkway
Dallas, TX 75201
Subject: Non-Binding Letter of Intent for IT Managed Services
Dear Ms. Wong,
This letter outlines the basic terms under which Network Solutions LLC (“Provider”) would provide managed IT services to TechCorp Industries (“Client”).
This letter is not legally binding except for the confidentiality section. The final terms will be in a formal service agreement.
Services Scope
Provider will deliver the following managed IT services:
- Network monitoring and management
- System administration and maintenance
- Cybersecurity services
- Help desk support (Tier 1-3)
- Backup and disaster recovery
- IT strategic planning
Service Levels
- Help desk response: 15 minutes during business hours
- On-site response: 4 hours for critical issues
- System uptime guarantee: 99.9%
- Monthly performance reporting
Term and Renewal
- Initial term: 24 months
- Automatic renewal for 12-month periods
- 90-day written notice required for non-renewal
Pricing Structure
- Monthly fee: $15,000 for base services
- Pricing includes support for up to 150 users
- Additional users: $75 per user per month
- Special projects billed at hourly rates per Schedule A
Payment Terms
- Monthly invoicing
- Payment due within 30 days
- 2% discount for annual prepayment
- Price increases limited to 3% annually
Personnel
- Dedicated account manager
- Two on-site technicians weekly
- 24/7 remote support team access
Client Responsibilities
- Provide access to facilities and systems
- Designate primary point of contact
- Follow security policies and procedures
- Report issues promptly
Transition Plan
- Implementation period: 60 days
- Knowledge transfer from current provider
- Systems documentation and inventory
- User training on support procedures
Confidentiality
Both parties agree to keep all client data and business information confidential.
If these terms are acceptable, please sign below to express your intent to proceed with a formal agreement.
Sincerely,
Marcus Johnson
Business Development Manager
Network Solutions LLC
Acknowledged:
________________________
Grace Wong
TechCorp Industries
Date: ________________
Implementation Schedule
- Phase 1: Teacher training (Summer 2023)
- Phase 2: Software installation (August 2023)
- Phase 3: Curriculum integration (Fall 2023)
- Phase 4: Full program launch (January 2024)
- Phase 5: Assessment and refinement (Spring 2024)
Financial Terms
- Program cost: $250,000 total
- District contribution: $150,000
- Provider grant contribution: $100,000
- Payment schedule: Three equal payments (July 2023, January 2024, June 2024)
Provider Commitments
- Provide all software licenses for 3 years
- Deliver 40 hours of teacher professional development
- Supply technical support during school hours
- Provide quarterly program assessment reports
- Assign dedicated education consultant
District Commitments
- Ensure teacher participation in training
- Provide necessary computer hardware
- Allocate classroom time for program use
- Collect and share program usage data
- Participate in program assessment
Success Metrics
- 30% improvement in standardized test scores
- 50% increase in student STEM engagement
- 80% teacher satisfaction with program
- Implementation in all 5 middle schools
- Creation of after-school STEM clubs
Evaluation
- Baseline assessment: September 2023
- Mid-year evaluation: January 2024
- End-of-year comprehensive assessment: June 2024
- Annual program review with stakeholders
Term and Renewal
- Initial term: 3 years
- Option to renew for two additional years
- Annual price increases capped at 3%
Confidentiality
Both parties agree to keep student data and proprietary curriculum information confidential.
If these terms are acceptable, please sign below to express your intent to proceed with this educational partnership.
Sincerely,
Patricia Scott
Education Partnerships Director
Learning Technologies Inc.
Acknowledged:
________________________
Dr. William Chen
Westfield School District
Date: ________________
Wrap-up: Letters of Intent Guide
Letters of intent help start important business talks by showing what you want before making legal promises. The 15 examples here show how to write clear letters for many different situations.
When writing your own letter of intent, make sure to:
- State clearly that the letter is not binding except for specific sections
- Include all main terms you want in the final agreement
- Set a clear timeline for next steps
- Add confidentiality rules to protect your talks
- Get signatures from both sides
These samples give you starting points that you can change for your needs. With the right letter of intent, you can start any business deal with clear goals and good communication.