To get the best out of the proposed deal, it is wiser to obtain a well_prepared, complete and authentic Letter of Intent rather than use untutored and inexperienced methods to draw up the letter of intent. This will ensure the smooth transition of the assets of the business from the seller to the purchaser. Its importance as a preliminary document in a proposed sale is too great to treat it with inadequate attention.
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.