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Letter of Intent (LOI) Template

Use our letter of intent to declare your intention to purchase a good or service.

Updated May 3, 2024 Written by Sara Hostelley | Reviewed by Brooke Davis

A letter of intent (LOI) is a formal written document expressing a party’s intention to enter into a contract or agreement. It outlines the main terms of the future agreement and shows a serious commitment to a deal.

This document is most common in business transactions and purchases. Still, individuals can also use it to affirm their interest in or communicate a goal they want to achieve for a job, academic program, research project, or another collaboration.

• Letters of Intent - By Type (5)

Is a Letter of Intent Legally Binding?

When to use a letter of intent, what to include in a letter of intent, how to write a letter of intent, letter of intent sample, letters of intent – by type (5).

Below, you can find different versions of LOIs that fulfill the same purpose as a traditional LOI but for unique situations.

Used between the Seller of a business and a potential Buyer. Eventually, you would use a Business Purchase Agreement to complete the deal.

Real Estate

Used between the Seller of real property and a potential Buyer of the real property. You would use a Real Estate Purchase Agreement to complete the deal.

Personal Property

Used between the Seller of personal property, such as a car or jewellery, and a potential Buyer of the personal property. You would use a Personal Property Purchase Agreement to complete the deal.

General Purchase

Use this document to express your interest in a potential purchase. A General Purchase Agreement will be needed to complete the deal.

Other Transactions

Used between parties to document a potential transaction, such as providing goods or services over a given period of time.

Used to formalize the student-athlete's commitment to play sports at NCAA schools.

Because a letter of intent discusses a potential transaction, it’s usually nonbinding. Even though it’s not a legally binding agreement, it acts as a moral commitment between two parties promising to discuss a future arrangement in good faith.

However, certain sections of the LOI may be legally binding. If the letter contains legally binding elements, it will hold one or both parties accountable to certain terms and be enforceable by the law.

Some examples of legally binding aspects of an LOI include the following:

• Confidentiality clause: Declares that the parties must not disclose any information they share during negotiations.
• Exclusivity clause: Prevents one or both parties from discussing deals with other buyers or sellers for a certain period.
• Nonsolicitation clause: Prohibits one or both parties from unfairly using the arrangement to poach clients, customers, and employees during the negotiations.
• Governing law clause: Outlines the jurisdiction governing the contract’s interpretation and offers guidelines on handling disputes properly.
• Indemnification clause: States whether any party will need to compensate the other for any losses that arise from breaches of representations or warranties occurring during the negotiations.

Some LOIs will include all of these legally binding elements, while others will only include a few or none. It’s essential for the parties to include clear language indicating which terms are subject to alteration by the future agreement and which terms are already established.

Ensure that you carefully draft your LOI and understand the terms to which you’ll be held liable before signing it.

Use a letter of intent to establish a preliminary agreement, ensuring that you include nonbinding language to avoid any confusion or assumptions from the other party. Without this document, you might miss out on an opportunity because another party shows more serious intent.

Here are some specific instances when an intent letter would be useful:

1. Buying Property

A potential homebuyer may use an LOI to show their intention to purchase a specific property . The letter may contain a property description and details for a desired timeline. However, the terms can change slightly as the negotiations proceed. It may also require that a buyer obtain financing before moving forward with the formal agreement.

2. Entering a Lease

In a competitive real estate market, a tenant may use an LOI to show interest in renting a property . While a residential tenant may use this letter, it’s more common for a commercial tenant. A commercial tenant may use this document to specify what improvements they want the landlord to make to accommodate their needs before proceeding with the negotiations.

3. Buying Goods or Services

Two parties can use an LOI to settle on specific terms for buying goods or services before signing a finalized purchase agreement or service agreement .

The parties can sign this document to show each other a good faith intention to negotiate a deal. It can also help parties get on the same page as to what they expect from the purchase. A letter of intent could be used after a request for a proposal  from vendors.

4. Hiring an Employee

An employer often sends an LOI to a prospective employee after a successful job interview. They use this document to communicate the terms of the employment offer . If the employee currently works for the employer, the employer may use it to negotiate the terms for a pay raise or a higher-level position.

This letter can also be useful for prospective employees, as they may write this communication to relay their intent to join a company.

5. Applying for Entry into an Academic Program

Some universities require or prefer candidates to submit an LOI when applying for admission into undergraduate or graduate programs. Use this letter to express your interest in a particular program, distinguishing you from other potential students when spots are limited.

6. Acquiring a Business

Write an LOI to set the groundwork for buying or merging with another company . For example, the document may state that one party agrees to sell their business for a specific price but doesn’t yet explain who will take on certain business liabilities.

7. Entering a Joint Venture or Partnership

Use an LOI to outline the terms of a potential partnership or joint venture . Explain desired terms like the arrangement’s duration, contributions by each party, end goals for the collaboration, and decision-making protocols.

While an LOI can help two parties complete a more definitive agreement later, they may decide not to proceed with the details in the letter if certain conditions aren’t met (like a lack of funding from one party).

The elements to include in your letter of intent may vary depending on your end goal. For any transactional letter, ensure that you include the following elements:

• The buyer’s and seller’s names and contact information
• The initial terms to which you’re agreeing
• The effective date
• A clause stating which parts are nonbinding and binding

A nontransactional letter of intent may require different elements, such as:

• An introduction of yourself and your goals
• A clear desire to commit to the program, school, or job if you receive acceptance
• Reasons why the organization or individual should make you an offer

Here are the steps for writing a basic letter of intent. You may have to adjust the steps slightly depending on the reason for writing this document.

Step 1 – Fill in the Initial Details

Fill out the essential information regarding the seller, buyer, and transaction.

Step 2 – Detail the Purchase Price

If the agreement is transactional, include details about the purchase price. If you and the other party decide to forgo agreeing on a purchase price until one party completes due diligence, you can note the decision here.

You can detail that a certain amount will be required upon signing the letter or, if you’re using one, upon signing a purchase agreement.

Step 3 – Record Any Conditions and Exclusivity Statements

If you and the other party subject the proposed transaction to any conditions, include them in your letter. You can also emphasize if the seller agrees not to negotiate directly or indirectly with any other party concerning the item.

The parties can include certain conditions that must occur before they sign the final agreement, such as:

• The buyer securing financing
• The buyer successfully selling their home
• An inspection of the property
• Regulatory or other required approvals

You can also clarify whether the parties should maintain confidentiality about the agreement or if they have certain covenants to complete during negotiations.

Step 4 – State the Termination Guidelines

State when the letter will terminate. For example, it could be upon executing a purchase agreement or a mutually written agreement between the parties.

Step 5 – Record the Governing Law and Write a Non-Binding Clause

Detail which state’s laws will govern the LOI and include a clause on whether the letter is binding or non-binding.

Step 6 – Obtain All Parties’ Signatures

Finish your letter by having both parties sign the document.

Download a free letter of intent template as a PDF or Word file below and customize it for your specific intentions:

Related Documents

• Non-Disclosure Agreement : Establish a contract between two parties promising to keep shared information confidential.
• Memorandum of Understanding (MOU) : Outline an agreement between two or more parties in a formal document, communicating mutually accepted terms.
• Partnership Agreement : A document detailing the terms of a partnership when two or more people share ownership.
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Letter of Intent

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A Letter of Intent , also sometimes called a Letter of Understanding, is a written document in letter form that is sent by a party looking to build a final contract. The letter is sent to the other potential contract party and it usually contains the bare bones of the agreement between the parties. Often, the terms in a Letter of Intent have already been discussed between the parties and the actual letter is just a written memorialization of a previous conversation . A final contract will contain a lot more information than the Letter of Intent, but sending a letter like this is good practice between business parties before the finalization of a contract.

Keep in mind that a Letter of Intent isn't the actual contract - in other words, it's not the piece of paper that will actually create the underlying agreement - it's just the first step for a party to open negotiations about a contract that has already been discussed.

This Letter of Intent is quite simple, as it only needs to contain the basic information that will end up being the building blocks of the contract . In it, the underlying facts about the contract transaction are described, as well as the parties' identifying details.

How to use this document

This document can be used for any party that would like a written note of understanding to send to another party before a contract is finalized.

In this document, the parties names and contact information (like mailing addresses) will be entered. Then, basic, but important details of the contract will be entered, such as the last date of discussion on it, the underlying transaction, the pricing information, and confidentiality provisions .

After this document is filled out, it should be printed and signed . The party sending it should then make a copy, keep the copy and send the original to the other potential contract party. The party to whom it is being sent should ideally sign it as well and then a final contract can be drafted up later. If the party to whom it is being sent does not sign it, it means that something has gone wrong in the negotiations and the parties haven't agreed to anything.

Applicable law

Letters of Intent are a precedent to contracts in the United State s, but they are not binding agreements. This Letter of Intent especially makes clear that neither party is agreeing to be bound, and that the Letter of Intent is just the beginning of negotiations.

That said, contracts in the United States can be subject to both Federal laws and specific state laws , depending on the contents and subject matter of the contract. State laws govern general contract principles like formation and mutual understanding. Federal laws may restrict what services can be contracted for (for example, you may not contract for anything illegal) and certain broad categories, like contracting for something that looks more like an employment relationship.

How to modify the template

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

Other names for the document:

Contract Letter of Intent, Letter of Intent to Agreement, Letter of Intent to Contract, Letter of Intention for Agreement, Letter of Intention for Contract

Country: United States

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Letter of Intent Template

This Page (contents):

• Tips for Writing a Letter of Intent

Sample Letters of Intent

In business, a letter of intent is commonly used as an initial proposal to the other party. These proposals may include purchases, acquisitions, contracts and mergers. While not binding, a letter of intent can help clarify the points of a deal or provide protection should a deal collapse.

Whatever may be your case, you can use our free Letter of Intent Template as a guide. Continue reading below, where you will find two different sample letters of intent as well as additional tips and resources.

Other Versions

Author : Brent Weight and Jon Wittwer

License : Limited Use

Description

Simplify the process of writing a letter of intent by starting with this template. It outlines the different sections and topics that should be included in your letter.

Tips: How to Write a Letter of Intent

• Use a proper business letter format.
• Determine the name of the correct person to write to. To help ensure the letter is read by the right people, avoid addressing the letter to generic titles or names.
• Remember, most of the provisions are not binding and are a starting point for negotiations. The letter is part of the business negotiation process. However, some provisions can be made binding such as non-disclosure agreements or a "no shop" provision.
• Be concise and stay on topic.
• Read many sample intent letters, such as the ones below. Real examples specific to your school or industry are very useful.

Business: Sample Letter of Intent to Purchase

Ryan Francom CFO Siding and More Inc 123 Anywhere Street Somewhereville, Best State 88889

Bill Stevenson President Rain Gutters R Us 123 Anywhere Street Somewhereville, Best State 88889

Dear Mr. Stevenson,

We hereby submit a letter of intent to purchase your business Rain Gutters R Us, its inventory and other assets. We envisage that the principal terms of the proposed transactions would be substantially as follows.

We would acquire Rain Gutters R Us including its facilities located at 123 Anywhere Street, its logo, brand, brand equity and customer lists. Furthermore, we would acquire all office and field equipment and inventory. As part of the deal, we would assume the current outstanding debt of $50,000.

As consideration for this, we would provide compensation of $400,000 as follows:

• $50,000 deposit on execution of a purchase agreement
• $100,000 after 15 day transfer period
• Balance in equal payments paid monthly the first 6 months after closing

As part of this letter of intent, we would require that you cease shopping for other buyers for a period no less than 60 days to provide us time to complete due diligence and finalize the agreement. We would also require that you not disclose our intent to purchase until after the purchase agreement has been completed and we can issue a joint press release.

This letter is not an official purchase agreement. All of the terms and conditions of the proposed transaction would be stated in the Purchase Agreement, to be negotiated, agreed and executed by both parties.

If we are selected as a prospective buyer, we anticipate that from the selection date to the closing will take no more than 45 days.

Ryan Francom

Letter of Intent to Accept Scholarship

Scott Young 123 Anywhere Street Somewhereville, Best State 88889

Mike Sullivan Head Coach Awesome University Football Program 123 Anywhere Street Somewhereville, Best State 88889

Dear Coach Sullivan,

I wanted to confirm to you in writing my intent to accept the football scholarship offered to me by Awesome University. I am excited to put on the colors of the fighting lobos and begin practicing with you this fall.

Please send me information that will help me get ready for the season including information about enrollment, housing and training. If you have further questions, I can be reached at (123) 456-7890.

Thank you again for this opportunity and I look forward to seeing you again this summer.

Scott Young

More Sample Letters of Intent

• Sample Letter of Intent for Acquisition - iastate.edu - This one includes various legal provisions. The sample includes a detailed explanation.
• Sample Letter of Intent for Graduate School - nyc.gov - Example of how to write a letter of intent to attend graduate school (submitted along with the graduate school application).
• National Letter of Intent (NLI) - nationalletter.org - An NLI is used to prohibit other schools from recruiting a student that has signed a letter of intent to accept a scholarship at a specific school. The NLI is sent to you by the school.

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Free letter of intent template.

A letter of intent (LOI) is a versatile document that declares that one party is committed to doing business with another party if an agreement can be reached. It should include the most crucial terms of the prospective deal in letter format. Think of an LOI as outlining the broad strokes of a potential deal before the parties get to the nuts and bolts of determining the finer points.

Letters of intent are frequently used in academic pursuits, such as applying to graduate school or job searches when you hope to get your foot in the door, even without a specific job opening. They are also frequently used in mergers, acquisitions, and real estate deals. LOIs establish the groundwork for future negotiations in a wide array of business deals.

What is Included in a Letter of Intent

A letter of intent typically includes the terms of the agreement, any stipulations and requirements made, timelines, and the names of the involved parties. Typically, a letter of intent will be structured similarly to a formal business letter. The best structure would include the following:

• The contact information of the sender
• The recipient’s contact information
• A salutation
• An introduction that introduces yourself or your business and includes the purpose of the LOI
• A brief background that introduces the letter’s context and references previous discussions or agreements.
• The body of the letter of intent should provide detailed information relevant to the specifics of the proposed action. Include the terms and conditions agreed upon by both parties, as well as the timeline for completing the deal.
• Reference any attachments to the letter of intent
• Create a conclusion that summarizes the key points
• A closing that thanks the recipient for their consideration and expresses willingness or expectation of discussing the matter in further detail.
• A formal closing and signature

A letter of intent often includes a non-disclosure agreement .

The Purposes of a Letter of Intent

As we’ve briefly referenced, a letter of intent has numerous purposes in business, education, and employment. Some examples of the uses of an LOI include:

• Employment negotiations
• Mergers and acquisitions
• Joint venture proposal
• Real estate deals that will require significant negotiations
• Educational pursuits, such as collegiate athletes agreeing to play for a particular college if both parties can come to an agreement about scholarships

A letter of intent should clarify the points of a deal that have been agreed to and those that still need to be negotiated. It can also set an expiration date on how long the parties agree to commit to negotiations. For example, an LOI may include language that states that “ABC Corporation agrees to proceed with the sale of XYZ property as long as the parties can reach a mutual agreement of terms by _______(insert specific date).”

How to Make a Letter of Intent Effective

A professionally crafted template allows you to draft an effective LOI that includes the necessary language and information. Further, the letter of intent should clarify your objectives by defining exactly what you hope to achieve. Clearly state your key points, such as what you bring to the table and what you want from the recipient. Then, move on to the proposed terms, ensuring that they’re clearly stated in an easy-to-understand manner.

Prepare and include supporting materials to support the LOI, such as a business plan, project plan, or portfolio. The supporting documents needed will depend on the exact purpose of the letter of intent.

Consider the following suggestions to make a letter of intent as effective as possible.

Misunderstandings happen frequently, even when things are in writing. Clearly state the purpose and relevant details, including the purpose of the LOI, to avoid misunderstandings.

Keep it Concise and Specific

Avoid including unnecessary details and ambiguous language. Instead, provide clear language that outlines all involved parties’ terms, conditions, and expectations.

Professionalism

Use formal language, even if you have a personal relationship with the other party. Conveying the information in a professional tone will help support the validity of the letter. The LOI should clearly be labeled as such to avoid having it confused with other, perhaps less formal, communication.

Avoid Contractual Language

A letter of intent is not intended to be legally binding. Instead, it is meant to indicate a “meeting of the minds” before reaching the contract stage. However, if contractual clauses or language are used, it can lead to enforceable contractual obligations.

To avoid an unintended contract, avoid:

• Phrases like “shall,” “must,” or other mandatory phrases that can be interpreted as contractual statements. You should also avoid terminology such as “in good faith,” which some courts have determined can be contractual in nature when coupled with other phrases.
• Performance mandates in the LOI, such as a non-refundable escrow account, can result in the LOI being considered a contract.
• Language in subsequent correspondence that refers to the LOI as a “contract” or “final agreement” may be used as evidence of a contractual obligation.
• Be particularly careful in real estate dealings and ascribe to the school of thought that “less is better.” Courts have upheld letters of intent as purchase agreements when they contain a purchase price, property description, terms of payment, and closing dates.

If you’re concerned about inadvertently creating a contract, consider consulting with an attorney to review your letter of intent. Visit EasyLegalDocs for free legal document templates that are free and easy to use.

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Letter of Intent Template

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Letter of Intent FAQs

What is a letter of intent.

A letter of intent (LOI) is a versatile document that declares that one party is committed to doing business with another party if an agreement can be reached. Letters of intent are frequently used in academic pursuits, such as applying to graduate school or job searches when you hope to get your foot in the door, even without a specific job opening.

What should be avoided in a letter of intent?

Be careful to avoid contractual obligations in a letter of intent. You should also avoid unrealistic deadlines. It can take time for parties to perform due diligence and come to an agreement, so by setting unrealistic deadlines, you’ve rendered the LOI ineffective, as it’s likely to take longer than you’ve allowed to complete the deal.

What is the purpose of a letter of intent?

The purpose of a letter of intent is to declare the intent of all parties to do a specific thing. A letter of intent establishes the starting terms for negotiations and how the deal will be structured. It provides details that all parties can refer back to throughout the remainder of the negotiation process.

Is a letter of intent the same as a memorandum of understanding?

It depends on the type of language used. A letter of intent serves as an outline of the terms and conditions agreed to by all parties and specifies the intent of the party or parties that sent the letter of intent. A memorandum of understanding provides a broad outline of the agreement that the parties have reached. The only distinguishable difference between the two is that a letter of intent is not intended to be binding, while a memorandum of understanding is considered binding.

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What is a letter of intent, and how do you create one?

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Why would you use a letter of intent?

How do businesses use letters of intent?

What to include in your letter of intent., what is a letter of intent.

A letter of intent (LOI) is a document written in business letter format that declares a party’s intent to do a specific thing. It’s usually, but not always, nonbinding, and it states a preliminary commitment by one party to do business with another party. A letter of intent is very similar to a memorandum of understanding , a nonbinding document that usually precedes binding agreements.

When are letters of intent used?

Whether working independently or as part of a larger organization, anyone can use an LOI. For individuals, a letter of intent is comparable to a personal pitch that states their intent to accept an opportunity — it doesn’t set specific terms of a potential transaction or count as due diligence. For students or job seekers, for example, it can simply be a way to show professional courtesy and stand out from a crowded field of potential applicants.

On the other hand, businesses need due diligence before they engage in a transaction. That means taking reasonable steps to satisfy potential specific legal requirements by laying them out in detail in the letter’s contents. Those specifics can include being transparent about the purpose of the intent, the size of the transaction, the potential cost, and when the business hopes it will occur — although it can cover even more than that.

Job seekers can write letters of intent to hiring managers as a way to introduce themselves and provide more context and information about their experience. Unlike cover letters, a job seeker can send letters of intent at any time, with or without a job application. Job postings can attract numerous responses, and a letter of intent can get a candidate noticed. It can also make it easier for a recruiter or employer to recognize additional information about a candidate (beyond their current job title or LinkedIn profile), such as specific skills and experience related to the open position.

Businesses can use letters of intent to announce new transactions or relationships, before official paperwork like definitive agreements or purchase agreements is created. Sales, purchase, mergers, and joint ventures can all begin with LOIs, declaring their intentions and announcing who will be involved in the potential interaction.

Students may submit a letter of intent to a university as a part of their admissions materials. This usually declares their intent to enroll and includes an outline of their educational background. If a student is applying to a graduate program, the letter should also include specific examples of what they intend to study. Letters of intent in education are also sometimes known as statements of purpose.

Before creating official paperwork like definitive agreements or purchase agreements, businesses can use letters of intent to announce new transactions or relationships. Sales, purchases, mergers, and joint ventures can all begin with LOIs, declaring their intentions and announcing who will be involved in the potential interaction.

What is typically included in a letter of intent.

While they’ll be a little different depending on the unique situation, letters of intent should give all parties a clear roadmap for what’s to come, should each party act in good faith or stay true to their word. They introduce goals, expectations, and basic terms such as time frames for potential transactions, which helps all involved to better understand the potential business deal structure. This makes it simpler for parties to identify potential deal-breakers or binding items that will become important in the future. It can also be helpful having a letter of intent template as a reference to ensure nothing gets missed.

View free letter of intent examples

Turn your intentions into actions with an e-signature.

If a letter of intent requires a signature or if you want to verify that a recipient has reviewed it, you’ll want to include an option for them to return it with a signature. Sometimes preliminary negotiations can include disclaimers or legal documents such as a nondisclosure agreement . E-signatures can make these initial correspondences move faster.

Learn more about electronic signatures

E-signatures in action.

Letters of intent are the beginning of a relationship. E-signatures can help move that relationship along.

Faster contracts, less time in the inbox.

Adding e-signatures to correspondence doesn’t just cut down on paper; it can also reduce the time everyone spends opening, reading, and sorting through emails. Find out how Adobe reduced contract-related processing time by 36,000 hours and made contracts easier with e-signatures.

More efficient college applications.

Applying for college can be complicated. University of New Mexico made the process easier for high school students and other applicants. With e-signatures, forms went from potential bottlenecks to an easy, streamlined process.

Make your letter of intent even better with Adobe Acrobat Pro.

Adobe Acrobat Pro makes it easy for parties to exchange signatures and begin official relationships. Save time, save paper, and act on your intentions with Acrobat.

Letters of Intent: Common questions.

How is a letter of intent different from a letter of interest.

While both letters express interest, one difference between a letter of intent and a letter of interest is the level of commitment to the outcome. For example, a letter of intent to a graduate school lets you show why you’d be a benefit to them, and that you fully “intend” to take their offer if accepted. A letter of interest is less formal. It’s a good choice if reaching out to an organization that doesn’t have an open position listed, but they’d still like to connect with or demonstrate their interest in their business, purpose, or mission.

Is a letter of intent binding on the parties?

The answer depends on how the letter is written. For example, a letter of intent could be interpreted as a binding agreement if the parties indicated their agreement on specific terms of a business transaction and agree that the letter of intent is meant to be binding. However, if any of the terms were written vaguely or left open for future negotiation, the letter of intent may not be considered binding by the parties and instead is meant to record a basic understanding between the parties that will be further negotiated and agreed on. To know better where yours falls on this legality question, you should have an attorney review your letter before you finalize it.

Where can I find samples of letters of intent?

There are many situations where using a letter of intent sample can speed up the writing process and help you craft a standout statement. Whether you’re looking for LOI templates for a business merger, joint venture, school application, real estate transaction , or other, you can download and customize a wide range of free letters of intent samples directly from Adobe.

While they’ll be a little different depending on your unique situation, letters of intent usually give the parties a clear roadmap for what’s to come. They introduce goals, expectations, and basic terms such as time frames for potential transactions, which helps all involved to better understand the potential business deal structure. This helps make it simpler for parties to identify potential deal-breakers or binding items that will become important in the future. It can also be helpful having a letter of intent template as a reference to ensure nothing gets missed.

Take a look at a sample letter of intent, and see what to include in yours, from the subject line and salutation to the signature.

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How to Write a Letter of Intent

Last Updated: December 24, 2023 Fact Checked

This article was co-authored by Jonathan Soormaghen . Jonathan Soormaghen is a Career Coach and Founder of Resume Advisor, a career counseling firm that specializes in creating personalized products such as resumes, CVs, cover letters, and online branding tools to propel clients toward their next career milestone. Jonathan holds a BA in Political Economy from the University of California, Berkeley, where he was honored to serve as the Valedictory speaker of general commencement. Prior to founding Resume Advisor, he worked in management consulting and finance at companies including Accenture, Target, and Ernst & Young. Jonathan's clients have landed job offers from leading firms including Netflix, Google, Microsoft, Amazon, Facebook, Apple, Uber, Deloitte, KMPG, Accenture, and Merrill Lynch. There are 9 references cited in this article, which can be found at the bottom of the page. This article has been fact-checked, ensuring the accuracy of any cited facts and confirming the authority of its sources. This article has been viewed 5,355,809 times.

A letter of intent, much like a cover letter, is a way to introduce your personal application before an employer gets to your resume. It should be sent in addition to a resume, and include meaningful credentials and show off your writing skills. Though it may seem hard to fit all of this into 1 page, it’s easy to do as long as you follow a few simple steps!

Sample Letters of Intent

Before You Write

• Visit the business' or school's website. All necessities should be outlined accordingly. If you cannot find what you're looking for, make a phone call.

• If your letter is going to a whole team, be as specific as possible. If you know all their names, great! Include them. Your research will be impressive.

• A letter of intent is generally more comprehensive than a cover letter, though they are similar. It not only addresses the objectives outlined for a cover letter, but also defines your career objectives and goals, professional experience, leadership skills, and unique attributes to set you apart from the rest.

Your Letter of Intent

• If you're applying to a business, name the career field or organization/employer with whom you are interested in applying to and for which quarter.
• Personalize the letter. Make sure the letter of intent addresses the specific institution or organization to which it is being submitted. If it is a letter for graduate school, note why that school is the right choice for you. If it is a business proposal, highlight something that you have done which demonstrates a specific skill set that will apply to that company or organization. [4] X Research source

• Describe why you are writing the letter. Describe how you first learned about the internship or job position and why you are excited about it. Why are you interested in it and not their competitors?
• Say some good things about the school/program. Flatter the reader, but do not overdo it. Describe why you find the position appealing, and how your strengths and interests would be a good fit for the position.

• You may have to follow up as well, depending on the policy of the organization. It's best to cover all your bases.

Once It's Created

• Make sure to look at your work on a micro and macro level. Not only should the words be accurate, concise, and fit together, but the paper needs to fit together as a whole. Does it seem to gel? Would any reordering make it better?

• Edit ruthlessly to avoid repetition and make the writing flow smoothly from one paragraph to the next. Have a fellow student or co-worker, or a family member or friend read it for you. A new set of eyes will see a new set of things.

• If you have more than one page, you may want your name on each one (small and in the corner) in case the pages get separated.

Expert Q&A

• 12 point font is standard. Stick to Times New Roman or Arial. [10] X Research source Thanks Helpful 0 Not Helpful 0
• A letter of intent can also be referred to as a letter of interest, personal statement, or statement of purpose. Thanks Helpful 5 Not Helpful 1
• Keep the style of the letter direct and to the point. Avoid gimmicks, flowery prose or redundancy. Use an active voice, and be precise and concise. Thanks Helpful 3 Not Helpful 1

Things You'll Need

• Pen or pencil

You Might Also Like

• ↑ https://www.investopedia.com/terms/l/letterofintent.asp
• ↑ https://www.un.org/womenwatch/osagi/pdf/preparing%20resumes.PDF
• ↑ Jonathan Soormaghen. Career Coach. Expert Interview. 7 October 2020.
• ↑ https://journals.sagepub.com/doi/abs/10.1177/147078530504700404
• ↑ https://wts.indiana.edu/writing-guides/personal-statements-and-application-letters.html
• ↑ https://www.woculus.com/politely-ask-reply-formal-email/
• ↑ https://www.advertisingcrossing.com/article/900044421/Writing-a-Cover-Letter-and-Working-on-Final-Draft/
• ↑ https://www.touro.edu/departments/writing-center/tutorials/seven-steps-to-effective-proofreading/
• ↑ https://www.indeed.com/career-advice/resumes-cover-letters/how-to-choose-cover-letter-font-and-font-size

About This Article

In the first paragraph of your letter of intent, introduce yourself and state any relevant information like what department or organization you’re applying to. Then, get into specifics about why you’re writing the letter. Include when you first learned about the job, what you’re excited about, and what credentials you have that are relevant to the field. Conclude the letter by requesting an interview, and make sure you provide any necessary contact information like phone number and email address. For more advice, including best proofreading and editing practices, scroll down! Did this summary help you? Yes No

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How to Use a Letter of Intent (LOI) to Make a Deal

What Is a Letter of Intent (LOI)?

A letter of intent (LOI) is a document declaring the preliminary commitment of one party to do business with another. The letter outlines the chief terms of a prospective deal. Commonly used in major business transactions, LOIs are similar in content to term sheets . One major difference between the two, though, is that LOIs are presented in letter formats, while term sheets are listicle in nature.

Key Takeaways

• A letter of intent is a document declaring the preliminary commitment of one party to do business with another.
• The letter outlines the chief terms of a prospective deal and is commonly used in business transactions.
• LOIs are useful when two parties are initially brought together to hammer out the broad strokes of a deal before resolving the finer points of a transaction.
• Terms included in an LOI are certain stipulations, requirements, timelines, and the parties involved.
• Many LOIs include non-disclosure agreements (NDAs) and no-solicitation provisions.
• Letters of intent are also used outside of the business world in any circumstance where two parties intend to work together or form a deal.

Investopedia / Madelyn Goodnight

Understanding a Letter of Intent (LOI)

LOIs are useful when two parties are initially brought together to hammer out the broad strokes of a deal before the finer points of a transaction are resolved. LOIs often include provisions stating that a deal may only go through if financing has been secured by one or both parties, or that a deal may be squashed if papers are not signed by a certain date.

Since LOIs typically discuss potential points of deals that have yet to be cemented, they are almost universally intended to be non-binding .

LOIs can be iterative in nature. One party may present an LOI, to which the other party may either counter with a tweaked version of that LOI or draft a new document altogether. Ideally, by the time both parties come together to formalize a deal, there will be no surprises on either side of the table.

Many LOIs include  non-disclosure agreements (NDAs) , which contractually stipulate the components of a deal both parties agree to keep confidential, and which details may be shared publicly. Many LOIs also feature no-solicitation provisions, which forbid one party from poaching the other party's employees.

A letter of intent is usually drafted and signed while negotiations between parties are ongoing so that the final terms of a deal might vary from what was agreed upon in the letter of intent. Due diligence is conducted by both parties before doing business. It is a prudent business practice to complete due diligence before signing a letter of intent.

Purpose of a Letter of Intent (LOI)

Letters of intent may be used by different parties for many purposes. Parties can use an LOI to outline some of the basic, fundamental terms of an agreement before they negotiate and finalize all the fine points and details. Furthermore, the LOI may be used to signal that two parties are negotiating a deal such as a merger or joint venture (JV) .

Overall, LOIs aim to achieve the following:

• Clarify which key points of a deal must be negotiated.
• Protect all parties involved in the deal.
• Announce the nature of the deal, such as a joint venture or a merger between two companies.

Applications of a Letter of Intent (LOI)

In the context of business deals, LOIs are typically drafted by a company's legal team, which outlines the details of the intended action. For example, in the merger and acquisitions (M&A) process, LOIs detail whether a firm plans to take over another company with cash or through a stock deal.

Letters of intent also have applications beyond the business world. For example, parents may use them to express the expectations they have for their children in the event both parents die. Although they aren't legal documents like wills, LOIs may be considered by family court judges responsible for legislating what happens to the children under such circumstances.

LOIs are also used by those seeking government grants , and by highly sought-after high school varsity athletes. These individuals frequently draft LOIs to declare their commitments to attend particular colleges or universities.

Cornell Law School Legal Information Institute. " 45 CFR § 1160.9 - Letter of Intent ."

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Writing formal letter of intent (Key Concept)

Table of Contents

Writing formal letter of intent is similar to a cover letter. It gives an overview of your skills and experience in your industry and why you want to work for a specific company.

Core Definition of Letter of Intent

A letter of intent is called a “letter of interest,” is a letter you send to employers you’d like to work for. 

A letter of intent is useful for sending unsolicited job applications or queries to prospective employers. The letter introduces you to prospective employers to get them to view your resume.

A strong letter of intent will detail your most relevant talents and accomplishments. It will also explain why you are a good fit for the organization to which you are applying.

Sometimes, a letter of intent, in other words, a Terms Sheet, Framework letter, Letter of Interest, Intent to purchase letter or Assurance letter.

What’s the Difference Between a Letter of intent and a Cover Letter?

• A cover letter is for applying for a job that is listed. A letter of intent shows an employer that you want to work for them even if there aren’t any job openings listed. 
• Cover letters are centered on the job at hand and describe the candidate’s skills and how they fit with the job.
• A letter of intent has no time line for delivery, and the next steps may not be clear. In contrast, a cover letter usually leads to an interview and a job offer.
• An intent letter focuses more on the company than on a specific job and talks about the candidate’s skills in a more general way. 

When Should You Write a Letter of Intent?

• At a job fair, you give your resumes to employers.
• You’re looking into companies to find one that fits your interests and career goals the best.
• You’ve heard or been told that a company is hiring, even though no jobs are posted.
• The employer has jobs posted for other jobs, but they also hire people with your skills and experience or in your area of expertise.

A letter of intent makes sending your resume to an employer accessible, even when there aren’t any specific jobs in your field. This gives the employer a chance to see how valuable you are and how interested you are in working for them. It may also encourage the employer to see if the company has a need or a role you can fill.

Writing Formal Letter of Intent — What to Include

Even though your letter of intent should be specific to your skills, experiences, and qualities, there are five main things you should include:

Let’s look more closely at these five parts and what you should put in each one.

1. Opening Greeting

The greeting or salutation should be formal and follow the rules for formal greetings.

Start the letter with a standard greeting like “Dear Hiring Manager” or address it to a specific person in the company. You might be able to address your letter to someone in HR, but use a general greeting like “Hello if you’re not sure.”

But don’t be too friendly or casual in your greeting (“Hey,” or just using the person’s first name). The goal of the letter of intent is to make a sound, professional first impression that could lead to job offers.

2. Introductory Phase

Use the first sentence or two of your letter to say who you are formally . In this section, you should write your name, a short description of your current level of experience, and why you are writing.

For example, if you just finished school, talk about your degree and what you studied. If you already have a job but want to work for another company, include your job title and explain why you want to work.

It is best not to include any bad news in your letter. You don’t want to say, for example, that you want to leave your current job because you’ve had bad experiences with them. Instead, say why you want to work for the company or give other positive reasons. Reasons like the chance to move up in your career or take on a different role.

Write more about your skills and experiences in the body of your letter. This is an excellent chance to explain why you would make a wonderful addition to the company in one or two paragraphs.

Include specific examples of when you reached a goal or helped an organization somehow, and if you can, put a number to your accomplishments. When you want to work for a particular company, you should highlight how your skills and experiences fit with the company’s goals and needs.

4. Ask For What You Want

This is also known as a call to action and is the last paragraph of your letter. This is where you tell the employer what you want them to do for you. You could use this space to thank the employer for reading your letter and ask that they get back to you during job openings. You could also put your contact information here instead of after your signature.

The conclusion should be a standard way to end a business letter. For example, you could say “Sincerely” or “Thank you” to end the letter. As with the beginning, it’s best to avoid being too casual at the end. Don’t use “Cheers” or “Yours truly” as a sign-off.

Specific Types of Letters of Intent

Here are some instances where specific types of letters of intent can be used:

1. Buying Real Estate, a Business, or other kinds of property.

You can use a letter of intent to say that you want to buy a business, a business property, or a home. The letter should clarify that it’s not an official purchase agreement. It should state that the terms and conditions of the business deal will be written in the official purchase agreement.

2. Acceptance of a scholarship.

When accepting a scholarship, a student could send a letter of intent to a school or other group. The letter should show gratitude for the scholarship and enthusiasm about the chance. 

3. Graduate school.

If you want to apply to a particular graduate school, you could send that university a letter of intent. Some schools may even require a letter of intent as part of the application process. You should let the person know that you’ve sent in your application and say what graduate program you’re trying to get into. 

4. Private Acquisition

This type of letter of intent is similar to what you would use to buy a business. But it needs to be marked as private. As the sender, you might want to include the basic terms of the deal and a non-binding statement. The non-binding statement will prescribe how the agreement was made and how negotiations will work. 

5. Employment Opportunities.

Even if there isn’t a vacancy, you could send a letter of intent to a company to show that you’re interested in working there. In the letter, you can say what kind of job you’re looking for or if you’re looking for a job in a specific department.

Tips for a letter of intent

Your letter of intent can be written in any way you want. But there are a few best practices you might want to follow to make the letter more effective.

• If you send a hard copy of the letter, make sure it looks like a professional business letter. Your name, email address, and job title should be at the top. If you are sending the letter by email, put your contact information under your first and last name in the signature. 
• Do not say anything wrong about your current or previous employers. Instead, talk about yourself and your potential employer. 
• If you want to move up in your career, be specific about the level you want to be hired for. Emphasis like “senior-level positions” or “management” should be used.
• Don’t say how much you want to make. You should always talk about this with the recruiter or after a good interview. 
• You can use a friend or coworker who works at the company as a reference. Make sure that the person knows they will be used. 
• Use words like  “effective communicator”  and  “seasoned writer”  to describe your skills and experiences. Make sure that your skills and experiences are helpful for the job. Look at job descriptions for similar jobs to see what skills the employer might want. 
• Keep your letter short and straight to the point. 
• Before you send your letter, make sure it is correct and has no mistakes.

Letter of intent- Samples

Below is an example letter of intent using the template above. Use this sample as a starting point for your letter of intent:

To Whom It May Concern,

Email Format of letter of intent

Below is another sample letter of intent using the best practices above, but formatted for email.

Subject:The Introduction – Bishop Layman

Dear Ms. Williams,

During my 10-year tenure as Content producer for RCP Inc., I have always been impressed with your company’s excellent reputation on the internet. I believe my experience and sales knowledge would make me a valuable asset to Company KPL as your next Content producer.

In the past year alone as content manager for RCP Inc., I’ve built a new content calendar from scratch. I have also gained organic ranking by more than 15% in 4 months. In my prior role as content team lead, I oversaw the day-to-day activities of a 5-person content team. On the team, we used data to establish clear goals and objectives. I provide coaching and training to nurture a high-performance team. I also created a comprehensive training manual to reduce the onboarding process from 90 days to two weeks.

Company KPL is a wonderful fit for me because I am both data-driven and customer-centric. I am adept at generating actionable insights from data to increase customer loyalty and give exceptional customer service. I am passionate about inspiring staff to achieve content marketing goals.

Please find attached my resume for your consideration. I appreciate your consideration and look forward to learning more about this possibility from you.

Bishop Layman [email protected](456) 123-0978

Writing formal letter of intent is as important as any other written document. It offers opportunites to communicate with others in a sound and professional manner.

A formal letter of intent can be a time-saving method for letting someone know what you want. It can also offer them the chance to get a jump start on your offering in a short-term conversation.

Pam is an expert grammarian with years of experience teaching English, writing and ESL Grammar courses at the university level. She is enamored with all things language and fascinated with how we use words to shape our world.

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