LOI Offer for India

LOI Offer Template for India

A Letter of Intent (LOI) Offer document governed by Indian law serves as a preliminary written instrument that outlines the proposed terms and conditions of a business transaction or arrangement. This document, while generally non-binding except for specific provisions like confidentiality and exclusivity, establishes the framework for future negotiations and demonstrates serious intent between the parties. Under Indian jurisdiction, it must comply with the Indian Contract Act, 1872, and other relevant legislation, while incorporating standard commercial practices recognized in Indian business transactions.

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What is a LOI Offer?

The LOI Offer is a crucial preliminary document in Indian business transactions that bridges the gap between initial discussions and final agreements. It serves as a roadmap for negotiations while providing certain binding commitments between parties. When drafting an LOI Offer under Indian law, careful consideration must be given to distinguish between binding and non-binding provisions, as Indian courts may interpret certain commitments as legally enforceable. The document typically includes key commercial terms, conditions precedent, exclusivity provisions, and confidentiality obligations. While not as detailed as a definitive agreement, the LOI Offer should be drafted with sufficient clarity to avoid potential disputes under Indian contract law and should align with specific regulatory requirements depending on the sector and transaction type.

What sections should be included in a LOI Offer?

1. Date and Address Block: Formal letter heading with date and recipient's complete address

2. Subject Line: Clear identification of the transaction or proposal being discussed

3. Introduction: Identification of the parties and their authorized representatives

4. Transaction Overview: Brief description of the proposed transaction or business arrangement

5. Key Commercial Terms: Essential business terms including pricing, scope, and timeline

6. Binding Terms: Explicit statement of which terms are intended to be binding

7. Next Steps: Clear outline of the process moving forward and timeline for definitive agreements

8. Validity Period: Duration for which the LOI remains valid

9. Confidentiality: Basic confidentiality obligations regarding the proposed transaction

10. Governing Law: Specification of Indian law as the governing law

11. Signature Block: Space for authorized signatures and company details

What sections are optional to include in a LOI Offer?

1. Exclusivity: Used when parties want to negotiate exclusively for a specific period

2. Break Fee: Include when there's a need to specify penalties for withdrawal from negotiations

3. Due Diligence: When the transaction requires a due diligence process

4. Regulatory Approvals: When the transaction requires specific regulatory clearances

5. Cost Allocation: When there's a need to specify how transaction costs will be shared

6. Non-Solicitation: When protection against poaching of employees/customers is needed

7. Earnest Money: When an initial deposit or security amount is required

What schedules should be included in a LOI Offer?

1. Term Sheet: Detailed commercial terms and conditions in tabular or structured format

2. Asset Schedule: List of assets involved in the transaction, if applicable

3. Timeline Schedule: Detailed timeline for transaction completion and key milestones

4. Corporate Information: Key corporate details of the parties including registration numbers and addresses

5. Required Approvals: List of regulatory or third-party approvals needed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

India

Publisher

Genie AI

Document Type

Letter of Intent

Cost

Free to use
Relevant legal definitions
Relevant Industries

Technology

Manufacturing

Real Estate

Healthcare

Financial Services

Retail

E-commerce

Infrastructure

Telecommunications

Energy

Automotive

Pharmaceuticals

Media and Entertainment

Relevant Teams

Legal

Corporate Development

Finance

Business Development

Strategy

Operations

Mergers & Acquisitions

Investment

Commercial

Risk Management

Compliance

Relevant Roles

Chief Executive Officer

Managing Director

Chief Financial Officer

General Counsel

Legal Director

Business Development Manager

Corporate Development Manager

Investment Manager

Mergers & Acquisitions Director

Strategy Director

Commercial Director

Head of Operations

Chief Strategy Officer

Vice President of Business Development

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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