Letter Of Intent For A Project Template for Hong Kong

A Letter of Intent for a Project is commonly used in Hong Kong business practice as a preliminary step before entering into detailed project agreements. This document type is particularly valuable when parties need to formalize their intentions and establish basic understanding while maintaining flexibility for future negotiations. It typically precedes more comprehensive agreements and is especially useful in complex commercial projects where parties need to demonstrate commitment while conducting due diligence or securing financing. While governed by Hong Kong law, which follows common law principles, the LOI usually maintains a non-binding nature except for specific provisions like confidentiality and exclusivity. The document serves multiple purposes: it outlines key commercial terms, establishes project timelines, defines basic obligations, and sets the groundwork for detailed negotiations, while providing a clear framework for project development.

1. Letter Header: Company letterhead, date, and recipient's details

2. Subject Line: Clear identification of the project and document purpose

3. Introduction: Opening paragraph identifying the parties and general purpose of the LOI

4. Project Overview: Brief description of the project scope and objectives

5. Key Commercial Terms: Outline of principal commercial terms including rough pricing, timing, and key deliverables

6. Duration and Timeline: Proposed timeline for negotiation, due diligence, and project completion

7. Confidentiality: Basic confidentiality obligations regarding project discussions

8. Non-Binding Nature: Clear statement on which provisions are non-binding vs. binding

9. Next Steps: Outline of immediate actions and path forward

10. Closing and Signatures: Formal closing, signature blocks for both parties