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Posts tagged Letter of Intent.
October 8, 2010
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A Letter of Intent is a document that outlines the general terms and conditions of an agreement between parties before the agreement is finalized.  In real estate deals, a Letter of Intent are typical before entering large leases or an agreement to buy or sell commercial real estate. Letters of Intent are typically not binding on the parties, but can be if the parties so desire. Other times, just certain provisions of the Letter of Intent will be binding and enforceable, such as confidentiality provisions, covenants to negotiate in good faith or covenants providing for the exclusive right to negotiate. We can save a discussion of what makes a Letter of Intent binding or non-binding for a later blog post. But suffice to say that Letters of Intent have been a common source of litigation, and that there is a wide spectrum between binding and non-binding Letters of Intent that depends on the language in the document.