Letters of intent frame the material terms of business and commercial transactions.
They outline with considerable detail the substantive terms of the underlying agreement – price, reps and warranties, closing conditions, etc. They also provide a process by which a definitive underlying agreement will be finalized. But they are not, generally, intended to be definitive agreements themselves; not enforceable, only a substantial starting point.
There is, however, a certain point at which the detail in these letters becomes so extensive that they become enforceable.
This program provides a practical guide to the most important substantive and process aspects of letters of intent, their uses and traps, including unexpected enforceability.
- Drafting effective letters of intent in transactions
- Purposes of letters, timing, relationship to diligence, exclusivity
- Substantive terms v. process terms
- Indemnity, hold back and limitation of liability provisions
- Termination of a letter and survival of certain provisions
- Understanding the point at which letters of intent may become enforceable