Letter of Intent (LOI)
Put the headline terms of a deal in writing before the full contract. Create an LOI with Claustar in minutes.
A letter of intent is a written document that expresses one party intention to enter into a formal agreement with another. It outlines the key terms of a proposed deal before a full contract is drafted.
- Signaling intent to acquire or partner with another business.
- Expressing interest in a real estate transaction.
- Opening formal deal negotiations with agreed-upon parameters.
- Getting the headline terms down before drafting the full contract.
What a letter of intent typically covers
Parties and purpose
Who is involved and what the proposed deal is.
Key terms
The headline terms being proposed.
Exclusivity
Whether the parties agree to negotiate exclusively.
Confidentiality
How shared information is handled during talks.
Binding sections
Which parts are intended to be enforceable.
Timeline
Expected next steps and dates.
Describe your situation
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Guided intake fills in the details that matter for your document.
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Is a letter of intent binding? +
Some sections of an LOI are commonly intended to be binding and others are not. Whether a given term binds you is a legal question, so consult a licensed attorney.
When do I use an LOI instead of a full contract? +
An LOI is commonly used to capture headline terms before a full contract is drafted.
Does an LOI replace the final agreement? +
No. An LOI commonly precedes a definitive agreement that contains the full terms. Claustar can help you create both.
Related agreements
Attorney-built, from day one.
Claustar's templates are built with attorneys, so every starting point reflects how agreements are actually structured in practice.
Claustar is a document preparation platform, not a law firm. Consult a licensed attorney for advice specific to your situation.