term "letter of intent" heard many.But what does it mean in practice, how to prepare and what to consider when signing such a document?
Agreement of Intent in nature close to the preliminary contract.However, it differs in a number of features.The first agreement of intent does not fix rigidly, but only formulates the will of the parties to sign a specific agreement in the future, to work together to engage in any activity.More often than not specified therein, and strict time frames.We can say that an agreement of intent is rather a psychological effect than a legal, just because of the wording of blur.Secondly, this document, as opposed to the prior agreement imposes obligations on the parties.It merely states that in the future (usually uncertain or take several years), participants will examine the various aspects of co-operation: from the price terms, the specification of specific goods and services, on terms to sanctions and jurisdiction.However, these very details of an agreement of intent to enter into a contract (eg sale, lease, transfer of rights and other) does not describe.
Most often, this document is drawn up in order to sum up, to issue statements regarding the various meetings and negotiations.It more or less official form recorded goodwill of the parties to continue and develop relations in the future.Quite often such documents are signed by various organizations and institutions - from the government and diplomatic to charity and creative.However, liabilities and sanctions for their violation, force majeure or specific dates are not provided.However, an agreement of intent to become a milestone in relations between the parties.It can serve as a kind and recommendations confirm the reliability and prestige of the negotiators.Terms and conditions for the termination of such an instrument, as a rule, does not mean that is the parties are free at any time to renounce their intentions and plans.The impact on the company and the business community are more psychological.The signatories of the document the parties who want to be considered as serious partners can not neglect its reputation and unreasonably refuse to plans.
Letter of Intent of sale makes sense to be in the case of particularly large transactions.Often, after negotiations with potential partners, after the discussion of the general conditions and to their specificity as the parties have the opportunity to review and examine in detail the potential reliability of the counterparty, and to predict the results of the transaction.At the same time, an agreement of intent in this case, gives more weight, solidity plans.Of course, it differs from promession and by prior agreement, as nothing is guaranteed and does not impose obligations.Nevertheless, the business community the signing of such a document is considered good form.
