How to Write a Letter of Intent

A letter of intent is a way of formalizing the terms of a verbal agreement between two parties without signing a contract. Here's how to write one.

You will need

  • Verbal agreement
  • Parties to the agreement
  • Valid dates for the agreement
  • Termination conditions
  • Understanding about binding terms
  • Request for a reply
  • Terms and conditions (optional)

Step 1 State terms clearly Spell out the essential elements of the verbal agreement you have reached with the other party.

Step 2 Identify all of the parties Identify all of the parties subject to the agreement.

Step 3 Specify dates Specify the beginning and ending dates of the period for which the agreement is to remain valid.

Step 4 Include a termination statement Include a statement explaining how the agreement can be terminated.

Step 5 Add a statement about the agreement being binding Add a statement that both parties understand they are entering a binding agreement — if that is in fact the case.

Step 6 Request a reply Request a reply if the other party does not agree that the letter accurately reflects the verbal agreement. Then sit back knowing that you have clearly stated the terms of your agreement.