{"componentChunkName":"component---src-templates-blog-post-ts","path":"/blog-bit-letters-of-intent-binding-or-non-binding/","result":{"data":{"site":{"siteMetadata":{"title":"Clausehound Blog","author":"Joshua Koudys"}},"markdownRemark":{"id":"79b11eda-a5f2-5948-a55a-aebb1cf88123","excerpt":"This article posted on our partner site Mondaq.com illustrates how a letter of intent (LOI) can be interpreted as either binding, or non-binding on both parties…","html":"<p><a href=\"http://www.mondaq.com/canada/x/623010/M+A+Private+equity/Drafting+a+Nonbinding+Letter+of+Intent\" target=\"_blank\" rel=\"nofollow noopener\">This article posted on our partner site Mondaq.com</a> illustrates how a letter of intent (LOI) can be interpreted as either <em>binding</em>, or <em>non-binding</em> on both parties.</p>\n<p>To avoid drafting a legally binding LOI, the parties should consider three (3) central points. <em>First</em>, the LOI should explicitly state that LOI is not intended to be legally binding and should avoid the use of contractual language (e.g. “this agreement”, “upon acceptance”, or “it is agreed”). <em>Second</em>, the LOI should clearly state that it is not the entire agreement and that a final, definitive agreement with all the relevant terms will be drafted at a later point. <em>Third</em>, until a final agreement has been reached the parties should ensure that their conduct before, during, and after the LOI does not imply an intention to be bound.</p>","frontmatter":{"title":"Blog Bite: Letters of intent, binding or non binding?","date":"November 09, 2017","description":"This article discusses how a letter of intent (LOI) can be interpreted as either binding, or non-binding on both parties.","author":{"id":"alina@clausehound.com","first":"Alina","last":null,"bio":null,"image":null},"tags":["Term Sheet","Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq","Investor Term Sheet","Memorandum of Understanding"]}}},"pageContext":{"slug":"/blog-bit-letters-of-intent-binding-or-non-binding/","previous":{"fields":{"slug":"/blog-bite-how-do-i-negotiate-a-share-purchase-or-ma/"},"frontmatter":{"title":"Blog Bite: How Do I Negotiate a Share Purchase or M&A?","tags":["Term Sheet","Shareholders Agreement","Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}},"next":{"fields":{"slug":"/blog-bite-when-is-a-letter-of-intent-binding/"},"frontmatter":{"title":"Blog Bite: When is a letter of intent binding?","tags":["Term Sheet","Letter of Intent","Share Purchase Agreement","Blog Bites","Mondaq","Investor Term Sheet","Memorandum of Understanding"],"author":{"id":"alina@clausehound.com","first":"Alina","last":null}}}}}}