I. Transaction Contingencies. Contingencies are items that would likely cause the buyer, seller or both to walk away from the transaction should there be a disagreement. For examples: i. All Cash and Accounts receivable accrued up to the closing date will remain the property of the SELLER. ii. Buyer's Good Faith Deposit will be refunded in full in the event buyer's due diligence reveals unacceptable conditions. iii. Buyer and Seller each agree to pay their respective closing costs. iv. Buyer's Good Faith Deposit will be refunded in full in the event buyer's financing is denied and written verification is submitted to XYZ Brokerage, Inc. on or before July 1, 20XX.
Letters of intent are important in business relationships for they have many uses. For example, they are a form of proof to investors who want to know about the deals that the company has signed. They can get information on current business relationships.