Letter of Intent (LOI) Template
All states | 7 types
The letter of intent (LOI) helps you express interest in a business or partnership without having to sign a full contract right away. It’s a polite and professional way to start a conversation and show that you’re acting in good faith — meaning you're honest and open about your plans, without needing to bring in lawyers just yet.
When To Use a Letter of Intent
Common situations
A letter of intent template can be helpful when you want to show you're serious about starting something — like buying, renting, or leasing a property. You can also use the LOI template when you're planning to work with another business, buy part of it, or start a partnership.
Students might also use a letter of intent format PDF to apply to a school or university. It's a way to say, “I’m really interested in your program,” and share a bit about your goals and why you'd be a good fit.
When not to use a letter of intent example
Don’t use a sample letter of intent if both sides are already close to making a final deal. At that point, it’s better to go straight to a proper contract instead of adding another step that could slow things down.
Types of the Letters of Intent
You can use examples of letter of intent in many different situations. It's a way to show someone you’re serious about doing something — like making a purchase, starting a relationship, or going to school. Here are a few common examples:
Letter of Intent to Purchase Business
If you're thinking about buying a business, you can send a letter of intent to purchase business to show you're interested. It helps start the conversation and outline the basic terms before a formal agreement is made.
Letter of Intent for Graduate School
A letter of intent for graduate school tells the university which program you're applying for and why you're a great fit. It's a chance to share your goals and make a good impression during the application process.
Letter of Intent to Marry
A letter of intent to marry is often used in immigration situations to show that you and your partner plan to get married. It proves your relationship is real and that you have serious intentions.
Letter of Intent to Sue
A letter of intent to sue lets someone know that you’re thinking about taking legal action. It gives them a chance to fix the issue before you actually file a lawsuit.
Letter of Intent Real Estate
If you want to buy or rent a property, you can use real estate letter of intent examples to show the seller or landlord that you're interested. It lists the basic terms you're thinking about, like price or lease length.
Letter of Intent for School
When applying to a college or high school, you might need to write a LOI for a school sample. It tells the school that you’ve applied, which program you want to join, and why you’re excited about going there.
How To Fill in a Letter of Intent: Step-by-Step
Step 1: Fill in the sender and recipient details
- Write your full name in the "From" section.
- Write the other party’s full name in the "To" section.
- If you are writing this on behalf of a business, you can include the company name.
- Add your address where it says "usual place of living." If this is a business deal, use your work address.
From: John Miller, an individual having the usual place of living at 123 Main Street, New York, NY
To: Jane Smith, an individual having the usual place of living at 456 Park Avenue, Los Angeles, CA
Step 2: Express your intentions clearly
- Start the letter with a polite greeting (Dear [Recipient’s Name]).
- Mention why you are writing the LOI (e.g., discussing a business deal, collaboration, or service agreement).
Dear Jane Smith,
I am writing to express our mutual interest in a potential business partnership.
Step 3: Define the agreement terms
- Write the scope and objectives (What is this agreement about?)
- List responsibilities (What each party needs to do)
- Include financial arrangements (Payment details, fees, or contributions)
- Scope and objectives: Partnering on a marketing project.
- Responsibilities: John Miller will provide digital marketing services; Jane Smith will manage client communication.
- Financial arrangements: Payment of $2,000 per month for services rendered.
Step 4: Specify the governing law and deadline for response
- Choose which state’s law will apply if there are disputes.
- Set a deadline for the other person to respond to the LOI form.
Governing law: This Letter of Intent shall be governed by the laws of the State of California.
If you agree to the aforementioned terms, please provide your written response by no later than March 30, 2025.
Step 5: Sign the letter of intent
- Sign your name at the bottom and write the date of the agreement.
- The recipient should also sign if they agree.
- Always keep a copy of the signed LOI.
- If unsure about legal terms, consult a lawyer before signing.
Frequently Asked Questions
A letter of intent is not supposed to be too long and actively benefits from being short and succinct. Make sure that the letter you are writing is not longer than 800 words or can even be as long as 400 words. Just make sure that you can get across the purpose of the letter and why they should read it.
Save for a few instances, a letter of intent is not legally binding. Therefore, if negotiations fail or if the terms are not met, the LOI will simply cease to be effective. However, if you are too deep into negotiations and then they fall through, either party will be held liable. Since both partners have followed through on many future plans mentioned in the letter of intent, a judge will see it as a legally binding contract.
A letter of intent, a memorandum of understanding, and a term sheet are often confused with each other. The main difference between the three really comes down to their formatting.
A letter of intent is an actual letter that is often addressed to an individual or a company.
A term sheet is a simple document that lists the terms of a deal and explains why you are referring to it. It has a clear and direct tone and can be seen as a letter of intent in court.
A memorandum of association is like a letter of intent, but it is written before the final agreement. It is the last step before making a formal contract, and it does not involve any money exchange.