A business letter of intent can be used in a number of situations including a commitment to purchase something, usually a business. It is also referred to as s Memorandum of Agreement (MOA) or Memorandum of Understanding (MOU).
Selling Price & Terms _ Amount of cash down, interest rate and term as well as description of the security the buyer is providing the seller. Structure _ Is it an asset or stock sale? How is the sale price allocated among different elements of the sale such as non_compete clause and goodwill (this is important for tax reasons and is discussed in the next section).