Letter of Intention Example

The letter of intent is a type of non-binding agreement that contains commitments that can later be formalized by drafting a contract.

If signed by several parties, there is also talk of a memorandum of understanding.

Letters of intent resemble written contracts but are generally not binding on the parties as a whole.

Many letters of intent, however, contain provisions that are mandatory, such as non-disclosure of agreements, a good faith covenant, or willingness to promise exclusive rights to negotiate.

Purpose of Intention letter:

Some purposes may be:

  • Clarify the key points of a complex operation for the convenience of the parties.
  • Officially declare that the parties are currently negotiating, as in a proposed merger or joint venture.
  • Provide guarantees in case the agreement collapses during the negotiation.

A letter of intent can also be considered as a memorandum of understanding, a list of conditions or a discussion sheet.

Although the terms refer to different documents, the differences are often of a formal nature, reflecting different styles of writing or business customs, and not a substantial difference in what these different documents are intended to achieve.

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Most frequent uses for letters of intent


In the United States, letters of intent are frequently made between the upper secondary school of athletes and major colleges and universities, which in turn reserve sports scholarships for athletes at the time of graduation.


In academic settings, letters of intent are part of the application process. In this context, they are also known as Statement of Purpose or Test Request.

Persons with disabilities

The letter may be a document written by the parents or guardians that describes the history of the adult child or child with a disability, the current situation and the location of all other documents. In case of death of persons with disabilities, the courts depend on the letter of intent to understand the will of the family.


School administrators, particularly in high schools, often need a letter of intent to approve the organization or creation of a club.

Sample Letter of Intent

Sample Letter of Intent between two organizations

For the present document, on the one hand, the XXXX ORGANIZATION, known in abbreviated form and with all legal effects as Org Inc., with legal domicile in María de las Reyes 2255, Barcelona, ​​Spain, and represented in this act by Mr Mario Benítez, in his capacity as manager and,

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On the other hand, the ZZZZ ORGANIZATION, known in abbreviated form and for all legal purposes such as Org Z Inc., with legal domicile in Veracruz Street, Mexico City, Mexico, and represented in this act by Aníbal Pérez as Director.

BOTH PARTIES, recognizing reciprocally the character, personality and representation with which they appear, agree to MANIFEST the following:


The objective of this Letter of Intention is to establish the bases and joint lines of work between the participants from the moment of the signature of the present one until the establishment of relations of another type, if it were understood and it was in common agreement of the parties.


FIRST: Both parties declare their intention to exchange information with a view to identifying business opportunities for their representatives, in the office supplies sector.

SECOND: Both parties declare their intention to collaborate in the promotion of counterpart products and services, in the office supplies sector.

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THIRD: Both organizations will work in the organization of Business Rounds between businessmen of both countries, with the aim of promoting commercial relations in the office supplies sector.

FOURTH: Both organizations by mutual agreement will facilitate the exchange of business delegations within the framework of congresses, events, seminars, fairs, exhibitions or any other activity that takes place between the two countries for the benefit of expanding trade relations in the input sector for offices.

FIFTH: Maintain expedited communication and exchange of information necessary for the achievement of the PREVIOUS sections.

Given in the city of Barcelona, ​​Spain, on the 31st day of the month of May 2008,

By Org Inc:
Mr. Mario Benítez

By Org Z Inc:
Aníbal Perez

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