| When purchasing the assets of a company, finding a | | | | • Facilitating negotiations between the parties, |
| good letter of intent may not be easy for everyone | | | | although it is not a legal contract and so not legally |
| nor may a good one be easily available especially | | | | binding. • The new company so incorporated by the |
| when you are in need of it most. You may have a | | | | buyer will lead to his buying up all the assets as well as |
| general idea and some time to spare to write one for | | | | goodwill of the business from the seller. • In case |
| yourself, but you might be slamming the door on | | | | the deal falls through, the seller will reimburse the buyer |
| yourself if it does not turn out to be effective and | | | | his cost plus a percentage of the agreed purchase |
| useful for those who will be using it. Such a Letter of | | | | price in the form of liquidated damages. |
| Intent to Purchase the Assets of a Company is sure | | | | The format of the Letter of Intent to Purchase Assets |
| to be carefully drafted, keeping in mind general | | | | of a Company will expressly name both the Buyer and |
| terminology as well as including salient points that ought | | | | Seller and furnish relevant details such as their |
| to cover all the legal aspects to the satisfaction of the | | | | addresses, phone and fax numbers. It will further state |
| users. | | | | that the Purchaser is interested in purchasing 100% of |
| The Letter of Intent to Purchase the Assets of a | | | | the assets of the Seller in the form of an incorporation |
| Company will enable all persons concerned to specify | | | | that is to be formed by the Purchaser. The date of |
| the terms and conditions prior to the writing of a formal | | | | completion may be termed "Closing Date" and the |
| asset purchase agreement. It should be concise and | | | | amount of compensation plus any other liabilities will be |
| lay down the various key points that will prove its | | | | followed as per the terms and conditions of the Letter |
| value and help facilitate good business purchases. The | | | | of Intent to Purchase Assets of a Company. The |
| Letter of Intent to Purchase Assets of a Company | | | | transfer of ownership shall then pass into the hands of |
| should include: | | | | the Purchaser. |