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The Letter of Intent for LOA is a crucial preliminary document in Philippine business practice, typically used when one party intends to formally authorize another to act on their behalf but needs to establish the framework and conditions first. This document type serves as a stepping stone toward a formal Letter of Authority, outlining the proposed scope of authorization, key terms, and conditions that will be incorporated into the final LOA. Under Philippine law, while the LOI itself is generally non-binding except for specific provisions (such as confidentiality or exclusivity), it demonstrates serious intent and helps parties align their expectations before finalizing the formal authorization. The document is particularly important in cross-border transactions, corporate representations, and situations requiring clear delegation of authority, providing a structured approach to negotiating and documenting the intended authorization relationship.

1. Date and Address Block: Current date and complete address of the recipient

2. Recipient Details: Full name, title, and organization of the recipient

3. Subject Line: Clear indication of the letter's purpose (e.g., 'Re: Letter of Intent for [Project/Transaction]')

4. Introduction: Brief introduction identifying the sender and stating the purpose of the letter

5. Transaction Overview: Clear description of the proposed transaction or relationship being contemplated

6. Key Terms: Outline of the fundamental terms and conditions being proposed

7. Timeline: Proposed schedule for negotiations, due diligence, and execution of definitive agreements

8. Non-Binding Statement: Clear statement regarding which provisions are non-binding and which (if any) are intended to be binding

9. Closing: Standard closing paragraph with next steps and contact information

10. Signature Block: Space for signatures, names, and titles of authorized representatives