Letters of intent are an important part of acquiring a business, but if you don’t understand their purpose, it can leave you open to legal issues in the future. A letter of intent is a guiding document for the deal, and once it’s signed, stepping outside of those parameters can present a whole host of problems later.
When you think about letters of intent, you probably think of them as non-binding. That’s true but with caveats. If it moves forward, it’s an outline of the deal, and if those terms are misinterpreted or ignored, you’ll potentially leave yourself open to expensive and lengthy legal proceedings.
In this episode of Private Practices in Maine, Michael outlines the purposes of letters of intent, why they’re akin to wet concrete, and why having legal counsel can save you headaches later on.
If you’re considering a business acquisition, you don’t want to miss this episode on the true power of a letter of intent.
In this episode, you will hear:
- What a letter of intent is, and when they’re used
- The role of the letter of intent in relation to a definitive agreement and its impact on a transaction
- Some examples of cases where a letter of intent led to legal action when the terms of the letter of intent didn’t come to fruition
- When a letter of intent is useful and the importance of a confidentiality or nondisclosure agreement
- Why you should treat a letter of intent as a binding agreement
Resources from this Episode
Website – malloyfirmmaine.com
Phone – (207) 333-6700
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