What does a Letter of Intent look like, when sent from one corporation to another?

August 6, 2008 7:17 PM

Can you point me to some examples of a Letter of Intent that would be used by a large corporation to notify another corporation that corp #2 has been chosen to supply materials for a Very Large Project?

Last week it was announced that the company I work for has received a letter of intent from another company where the other company wants to use us as a supplier for several closely related projects. The contracts, if actually awarded (or is that what a letter of intent is??), would be worth >$50 million, and could open the doors for at least another $100 million in business.

This got me wondering, What does a letter like this look like? I imagine there is quite a bit of legalese/CYA going on, but then again, it was a Big enough Deal that they announced it to the employees.

I haven't asked my management if I can see the actual letter yet, because I'm not sure that would fly (although, I'm not sure why it wouldn't).

posted by ArgentCorvid to Writing & Language (1 answer total)

Most large companies have entire legal departments that focus on this sort of thing. Although, I am sure that you can find copies of LOI's all over the internet, it is not going to be exactly what you are looking for.

As to what a Letter of Intent is, it's simply a document indicating that party A has interest in potentially engaging in some sort of contractual relationship with party B. It is not a contract.

So, in your case- the company that submitted the LOI is indicating that they might use your company as a supplier, pending diligence.

Why they announced it to the employees? I'd suspect it has something to do with morale and motivation. Frankly, an LOI has very little substance, but it could lead to a contract.
posted by copernicus at 7:08 PM on August 21, 2008