A template Letter of Intent (LOI), Model Memorandum of Understanding (MOU), Heads of Agreement (HoA) or term sheet, in a 'legal' format for all sorts of transactions. The template Letter of Intent lists LOI conditions, outstanding issues and points requiring agreement, the LOI / MOU is not binding.
A template Letter of Intent (LOI), sometimes also called MOU (memorandum of understanding), Heads of Agreement (HoA) or term sheet, is in a ‘legal’ format and suits all sorts of transactions. This template Letter of Intent is intended to be non-binding. The template Letter of intent (LOI or MOU) provides for elaborate options to be included or not:
- a listing of required conditions precedent required before a binding agreement can be entered into (the template Letter of Intent contains a few examples),
- outstanding (non-agreed) matters, to be agreed before any agreement becomes effective,
- to the extent already agreed, LOI-wording to include agreed clauses (to be inserted in a definitive agreement),
- a scheduling or roadmap for the (template) Letter of Intent negotiations towards signing a definitive agreement,
- optionally, exclusivity and non-solicitation provisions,
- a normal confidentiality clause (if no NDA had been entered into before this template LOI / Letter of Intent)
- basic boilerplate clauses.
A (non-legal) description of the project to be undertaken, can be attached.
Note that this template Letter of Intent or model MOU can be automated in the Weagree Wizard, in such a manner that Q&A-answers for creating the LOI or term sheet are be reused (as default answers) to create the (first draft) definitive agreement. This is especially useful in large transactions with some predictable structure (e.g. M&A, LMA, credit agreements or construction projects).