A Letter of Intent is a formal document used in businesses at the time of contracts and deals. It is also known by the name of a Cover Letter. The letter is used to give information about the contract, i.e. who the dealers are involved in the contract, the price of the deal, mergers, and their impact, etc. Try to use very professional language and do not add unnecessary details in the Letter of Intent. Below are certain guidelines that will help you in preparing an effective letter for your business.
Since a letter of intent is a letter sent before the purchase order, it must contain key information like the price, duration, materials, etc. The letter stands important as it is a signal to the other party about the confirmation of the contract and to start with the work. The letter consists of three main paragraphs which give details about the buyer, the seller, and the product or service offered. The language used must be convincing and of a kind that can build good business relationships.
Letter of Intent Format:
Follow the format to draft an effective Letter of Intent.
Start with a letterhead. This includes your name, designation, company name, and address. Leave a single line space and mention the current date (when you write the letter). After this, write the recipient’s name, his/her designation, company name, and complete address. Give a relevant salutation and begin with the body of the letter.
In the first paragraph, you can mention the intention behind this letter. The key information can be highlighted to grab the attention of the reader. Include the details about the buyer of the product or service involved in the contract.
In the second paragraph, give details about the seller or any third party involved (if any). You may add the contact information of the seller (third party) and also include experience with the same. Try to keep the tone very polite and professional.
Lastly, give details about the product or the service being offered in the contract. Further, try to communicate well to convey the message subtly. These are marketing tactics to run the business smoothly by maintaining long-term relations with the clients and other parties.
In the last section, give a “thank you” note and end with a positive tone. Sign off the letter with your full name and contact details.
Writing Letters of Intent
A Letter of Intent is a one-page document to be delivered to the other party to confirm the contract. Do not make it too brief rather, mention the necessary details. Try to type the letter and then draft a hand-written page. This will also help in keeping a soft copy of the same, which can be used for future reference. A Letter of Intent can be used in businesses when making contracts about real estate, tenders, purchase orders, acquisitions, services, etc. The above-mentioned tips will help draft an effective letter with proper usage of words.
Free Sample Letters of Intent:
Here is the free Letter of Intent to help you write down your letter quickly.
Check out this wonderful Letter of Intent Template that guides you on how to write your letter step by step. Just download it and study it to start writing your Letter of Intent for any situation.