So let's sum things up:* The LOI and similar documentary terms, are non standard, confusing, and lead to ambiguity. * Documentary ambiguity is referred to in trade law as a condition "The Battle of the Forms" in which confusion from contradictory and ambiguous forms and documents damages the transaction. This should be avoided. * To seasoned corporate traders and bankers, using terms like "Letter of Intent" is the mark of amateurs. * What you properly want is an RFQ, request for quotation, from a seller or supplier. The seller may then reply to your RFQ with a quote OR full offer if they wish.
Alright. Let's look at how to write a Letter of Intent step by stepǍ. At the top of the letter, write today's dateǎ. Include the Seller or Broker information at the top of the letterǏ. Explain that you are presenting this as a Letter of Intent to purchase the propertyǐ. Explain who you are _ whether you are buying through an LLC, investment group, etcǑ. Describe the property you are purchasing _ the property name and addressǒ. Include the price you would agree to purchase the propertyǓ. Define the due diligence period _ it may be anywhere from 30 to 90 days, possibly even longer in a complex projectǔ. Identify how you would like to finance the project _ Seller financing, loan assumption, bank financing, etc.