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These are but a few of the possible issues that you need to keep in mind when drafting up a business letter of intent. And, although it can be an expensive exercise, you really should consult your lawyer before you commence.

Proceeding with a clear understanding and agreement in principle: The key elements of the LOI should be negotiated beforehand and can be used as a guideline to prepare the purchase agreement. It should state that, if all information during due diligence confirms what was represented, that the buyer intends to complete the purchase under certain conditions. The key elements should include:

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