Document background
A Letter of Intent Between Two Companies is commonly used in commercial transactions governed by English and Welsh law when parties wish to formalize their preliminary understanding before committing to a detailed, binding agreement. It typically follows initial discussions and precedes due diligence and final contract negotiations. The document outlines key commercial terms, timelines, and any binding obligations (such as confidentiality or exclusivity), while clearly stating which provisions are intended to be legally binding. It provides a structured framework for negotiations while allowing parties to withdraw if further investigation reveals concerns or if terms cannot be agreed upon.
