9. Describe what you would like to review during the due diligence period _ financial information, leases, rent roll, etcሂ. Include the earnest money you would be prepared to put down during due diligenceሃ. Identify a Closing Date target _ it may be within 30 or 45 days of conclusion of the Due Diligence Period. This will vary based on the projectሄ. End the letter stating if these terms are acceptable, to let you know and you will follow up with a formal Purchase Agreement to move forward on the purchaseህ. Sign the letter.
The parties had negotiated in detail the clauses which comprised the terms as amended and as such the clauses had been essentially agreed and varied. This case highlights the dangers inherent in starting work before a formal written contract is in place and such letters of intent should always be treated with caution. However, if a letter of intent is inevitable, this should: Clearly specify those contract terms that have been agreed and those that remain outstanding, so that there is no uncertainty over what has or has not been agreed between the parties; and