Business Template

Free Letter of Intent (LOI) Template

A Letter of Intent outlines the preliminary understanding between parties before a formal agreement is drafted. Use this template for M&A, partnerships, real estate, or any negotiation.

Template

Copy this markdown, replace the {{variables}}, and send via API.

Markdown
# Letter of Intent

**From:** {{fromName}} ({{fromCompany}})
**To:** {{toName}} ({{toCompany}})
**Date:** {{date}}

## Purpose

This Letter of Intent outlines the proposed terms for {{transactionDescription}}.

## Proposed Terms

{{proposedTerms}}

## Timeline

- Due Diligence Period: {{dueDiligence}}
- Target Closing Date: {{closingDate}}

## Exclusivity

{{exclusivityTerms}}

## Non-Binding Nature

This LOI is non-binding except for the confidentiality and exclusivity provisions.

## Confidentiality

Both parties agree to keep the terms of this LOI confidential.

Send for e-signature

curl
curl -X POST https://signb.ee/api/send \
  -H "Authorization: Bearer YOUR_API_KEY" \
  -H "Content-Type: application/json" \
  -d '{
    "content": "YOUR_RENDERED_MARKDOWN",
    "senderName": "Your Name",
    "senderEmail": "you@company.com",
    "recipientName": "Recipient",
    "recipientEmail": "recipient@email.com"
  }'

What happens next

  1. Signbee converts the markdown to a professional PDF
  2. Recipient gets an email with a signing link
  3. Both parties sign with an animated handwriting signature
  4. Both receive the signed PDF with a SHA-256 certificate

All signatures are legally binding under the ESIGN Act, eIDAS, and ECA.

More details

A Letter of Intent (LOI) is a critical pre-agreement document used in M&A transactions, real estate deals, partnerships, and franchise negotiations. While typically non-binding, specific clauses like confidentiality and exclusivity are usually enforceable.

LOIs serve several strategic purposes: they establish mutual interest before either party invests heavily in due diligence, they set the framework for final agreement negotiations, and they create a written record of key terms discussed verbally.

Binding vs. Non-Binding: The most common mistake with LOIs is assuming the entire document is non-binding. In practice, courts may enforce specific provisions — particularly confidentiality, exclusivity, and governing law clauses. Always clearly state which sections are binding and which are aspirational.

What to include in your LOI: - Transaction description and structure - Proposed price or valuation methodology - Due diligence scope and timeline - Exclusivity period (no-shop clause) - Key conditions precedent - Confidentiality obligations - Termination triggers

Signing an LOI electronically is the modern standard. Deals move fast — waiting for physical signatures can cost you the opportunity. With Signbee, send the LOI for signature and get it back signed within minutes, not days.

Frequently asked questions

Is a letter of intent legally binding?

An LOI is typically non-binding for its commercial terms (price, structure, timeline), but specific provisions like confidentiality, exclusivity, and governing law are usually enforceable. Always specify which sections are binding.

Can I sign a letter of intent electronically?

Yes. Letters of intent are fully valid with electronic signatures under ESIGN (US), eIDAS (EU), and ECA (UK). E-signed LOIs are standard in M&A, real estate, and business negotiations.

What is the difference between an LOI and an MOU?

An LOI (Letter of Intent) typically signals one party's intent to enter a transaction. An MOU (Memorandum of Understanding) usually reflects mutual agreement. In practice, the terms are often used interchangeably, though MOUs tend to be more detailed.

Related resources

Send this template for signing — free, no credit card.