Ensuring Electronic Signature Legitimateness for Letter of Intent in United States

How to eSign a document: electronic signature legitimateness for Letter of Intent in United States

in many business transactions the parties will negotiate and sign a letter of intent to ensure that they agree preliminarily on the basic business terms of a deal before spending the time and money Drafting and negotiating a full-fledged agreement a letter of intent may be formal or informal lengthy or short the idea is that letter of intent or Loi begins as a proposal from one party to the other which is then negotiated and modified so that the final Loi reflects both parties big picture expectations on the deal if the parties cannot agree on a letter of intent they quickly realize that they will not likely be successful in completing a business transaction a letter of intent can be used in any type of deal a lease Arrangement the purchase and sale of property or the purchase and sale of the stock or assets of a business are some good examples of transactions in which the parties may use a letter of intent as the first stage of the transaction usually letters of intent contain very specific information such as identification of the parties identification of the property or business that is the subject of the transaction financial terms the parameters for a study period or required due diligence information a closing date financing specifics Etc the letter of intent will also specify whether it is binding or non-binding a non-binding letter of intent is a convenient way to understand the intent of the parties without requiring them to be legally bound to complete the transaction before all the terms of a final agreement are determined to be satisfactory to both sides keep in mind that it is important to place a reasonably short expiration date on a letter of intent the parties need to know whether the transaction is proceeding or whether they should investigate other options finally each bus business term that is agreed upon in the LOI is one less term that will need to be negotiated in a later final agreement thus the more detailed and specific the letter of intent the better off both parties will be in the long run