Document background
The Standard Letter of Intent is a crucial preliminary document used in various business transactions across the United States. It serves as a formal expression of interest and outlines the fundamental terms of a proposed deal before parties invest significant resources in due diligence and detailed negotiations. While primarily non-binding, certain provisions like confidentiality and exclusivity are typically enforceable under U.S. law. The document helps parties align their expectations, establish a framework for negotiations, and demonstrate commitment to the transaction. Letters of Intent are particularly common in mergers and acquisitions, real estate transactions, joint ventures, and significant commercial relationships. They provide a structured approach to preliminary negotiations while maintaining flexibility for the final agreement terms.
