Businesses have three basic types. These are the sole proprietorship, partnership, and corporation. There are other sub-types of businesses. These are the joint venture and merger. In these categories either two different business merge together as one or one business overtakes the other business. These categories are situation based. It happens due to some economic up or downfall.
When a buyer is buying a business or a seller is selling a business, a letter of intent is written. The letter of intent clarifies to meet the needs and requirements. It also provides the option of final acceptance and refusal. Additionally, it is also important to get complete information about the related party. It is usually sent before the completion of the deal between the parties.
In such letters, all the legal information should be kept in the notice. The purpose must be stated clearly. The prices and bargaining issues must be highlighted. Some advanced amount should be decided as a proof or guarantee. The processing time and details should also be highlighted. The information in such letters must be requested to keep confidential. Any refusal or acceptance authority must be allowed before binding in a deal.
The following letter is a letter of intent for a business. And it can be used with possible amendments.
Dear Mr. /Ms. [NAME HERE],
I am [Name Here]. I am writing to inform you about my interest in the joint venture regarding last week’s conference held at [Place Name]. I am much optimistic about the future prospect. The deal will be of great profitability for both parties.
I hereby agree to share all the returns and risks. Our purpose of this joint venture is to access the new market. I am confident that both firms will play an active role in achieving the desired objectives.
I am sending a copy signed document form on behalf of my firm. The costs, estimated risks, and budget allocation are comprehended. I would be waiting for a copy of the signed document on behalf of your firm.
I wish to have a strong positive relationship with each other. I am waiting for your kind response.
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