The Intention Letter Model is commonly used in commercial transactions governed by English and Welsh law when parties wish to formalize their preliminary understanding before proceeding with detailed negotiations. It serves as a roadmap for the transaction, documenting key commercial terms, conditions, and timelines while typically maintaining a non-binding nature except for specific provisions. This document type is particularly valuable in complex transactions where parties need to demonstrate serious intent while maintaining flexibility for detailed negotiations.
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1. Identification of Parties: Full details of all parties involved including addresses and registration numbers
2. Purpose Statement: Clear statement of the intention and scope of the proposed transaction
3. Key Terms: Main commercial terms being proposed
4. Timeline: Proposed timeline for completion of the transaction
5. Non-Binding Nature: Clear statement regarding which provisions are binding/non-binding
1. Exclusivity: Terms preventing negotiations with other parties - include when exclusive negotiations are required
2. Confidentiality: Terms regarding information sharing and confidentiality - include when sensitive information will be shared
3. Cost Allocation: How costs will be handled during the negotiation period - include when significant costs are expected during negotiations
1. Term Sheet: Summary of key commercial terms being proposed
2. Timeline Schedule: Detailed breakdown of proposed transaction timeline
3. Due Diligence Requirements: List of required documentation and information for complex transactions requiring due diligence
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