Business Purchase Intent Letter - DOC - DOC by vyb75613


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									                                          Letter of Intent

A “letter of intent” is a written preliminary contractual document that authorizes WHOSIT or
WHOSIT’s subcontractor’s to begin work. It is customarily employed to reduce to writing a
preliminary understanding of parties who intend to enter into contract. It gives the owner
authority to proceed prior to the execution of a more formal contractual document between
both parties. In some cases, both WHOSIT and the client or WHOSIT and it’s
subcontractors, have completed or nearly completed contract negotiations and are awaiting
internal reviews and approvals. Occasionally a situation emerges rapidly which requires
immediate action. It may be more appropriate to define a specific limited scope of work and
issue a purchase order to cover the limited requirements, pending the negotiation of a complete
scope of work with complete funding.

Letters of intent should be limited in duration and total financial obligation. Letters of intent must
lead to a fully defined contract or be subject to a negotiated settlement agreement due to the
parties not reaching agreement on the continued progress of the work.

A letter of intent should be as complete and definite as possible. This may include the general
provisions for the contract type. It should definitely include a funding limitation or ceiling not to
exceed price as well as a description of a mini scope of work/schedule.

Letters of intent should be terminated and negotiated into a fully executed agreement as soon as
possible. Since a letter of intent does not include all of the standard terms and conditions and
may not allow for payment for expenditures, it is in the best interest of all parties to finalize a
negotiated agreement soon after it is issued.

A sample letter of intent follows as Attachment A.

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                                       Letter of Intent

Dismantle Consultants, Ltd.
Attn: Mr. -------- ---------------
------------, ----- ------------

Subject: Letter of Intent
       Site: --------------------------

Dear Mr. ------------------:

Whosit Construction Company has reviewed all submitted proposals for the subject laboratory
and is pleased to inform you that Dismantle Consultants, Ltd. is the apparent successful
bidder. This Letter of Intent is offered to award preliminary funding for your services.

You are hereby authorized to perform services as outlined in Whosit specification
# xxxxxx, part --, up to a funding limitation not to exceed $ xxx.00. The project schedule is
referenced in Whosit document # xxxxxxxxx. You should immediately submit, via fax, your
company insurance certificate, naming Whosit Construction Company and the (owner) as
additional insureds.

It is the intent of Whosit Construction Company to enter into a formal subcontract agreement
with Dismantlement Consultants, Ltd., with funding as released per a Whosit purchase order,
within four (4) weeks. The terms and conditions of the Whosit Subcontract Agreement and
Purchase Order will take precedence over this Letter of Intent.

We look forward to working with your organization on this important project. We will contact
you shortly to commence contract negotiations.

Very Truly Yours,

--------- ---- ----------
Purchasing Manager

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