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Outstanding Intent Of Letter

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Non_binding letters of intent for the purchase of a business or business assets should be drafted carefully, and may include most or all of the following elements: Total compensation offered, including breakdown (size of security deposit, down payment, seller_financed debt, bank debt), Warranties of clear and marketable title, A detailed list of all liabilities and assets to be purchased, Assurances of the validity and assumability of contracts (if applicable), Tax liability limitations, Operating condition of all equipment and machinery at time of purchase

G. Terms of the transaction_Examples: All Cash at Closing... or Ūꯠꯠ Cash and 趚ꯠ Promissory Note at Closing. H. Information pertaining to any lease to be entered into by the buyer. Example: Buyer and Seller agree to enter into a triple net lease with an original term of 10 years and three five_year options. Annual increases in the lease rate will be the lesser of CPI or 2Ǒ% of prior year's rent. Again, the LOI is not drafting the lease. It is only establishing the primary terms.

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