Letters of Intent are commonly used in a variety of matters, most often the purchase/sale of a business, leases, and employment contracts, and while a Letter of Intent is not binding, it is impactful.
In the early stages of any matter it can be important for the parties to put into writing some of the terms that both sides feel are important enough to discuss early in the process. Taking the time to consider what those terms may be and putting them into writing will actually save time and money during drafting of the full contract, as it allows both parties to know early on if there are any terms that may be unacceptable to the other side. For example, when negotiating a commercial lease, if the potential tenant desires to be the only business of its type in the building, the tenant should disclose that term early, in order for the landlord to agree or not on the exclusivity.
While letters of intent aren’t binding in the sense that neither side is contractually obligated to proceed or close on the matter, if terms aren’t included in a letter of intent or should have been included, it can be difficult to add them later, or it can be difficult for both sides to agree on terms that are different than what has been agreed to in a signed Letter of Intent.
Having an experienced attorney draft and negotiate a Letter of Intent can be crucial in ensuring that the matter proceeds as smoothly as possible after the Letter of Intent is signed. The attorneys at Thomas Law Group have experience negotiating agreements, from the initial Letter of Intent through closing, in the Columbus area as well as throughout the state of Ohio.