The Letter of Intent Startup is a crucial preliminary document used in the Nigerian business environment to initiate formal negotiations for startup-related transactions. It serves as a roadmap for more detailed agreements while providing structure to initial discussions. This document type is particularly relevant in Nigeria's growing startup ecosystem, where it helps bridge the gap between informal discussions and final binding agreements. Typically used before major transactions such as investments, acquisitions, or strategic partnerships, it outlines key terms while maintaining flexibility. The document must comply with Nigerian contract law and relevant regulations, including the Companies and Allied Matters Act (CAMA) 2020 and applicable securities laws. While primarily non-binding, it often includes binding provisions for confidentiality and exclusivity, making it a balanced tool for protecting all parties' interests during negotiations.

1. Date and Parties: Opening of letter identifying the sender and recipient parties with full legal names and addresses

2. Subject Line: Clear identification of the document as a Letter of Intent and brief transaction description

3. Introduction: Brief context setting and purpose of the letter

4. Transaction Overview: High-level description of the proposed transaction or relationship

5. Key Terms: Essential business terms including proposed value, timeline, and major conditions

6. Due Diligence: Overview of the proposed due diligence process and requirements

7. Timeline: Proposed schedule for negotiations, due diligence, and completion

8. Confidentiality: Binding provisions regarding confidentiality of discussions and shared information

9. Exclusivity: Terms of exclusive negotiations if applicable

10. Non-Binding Nature: Clear statement about which provisions are non-binding vs binding

11. Closing: Signature blocks and formal letter closing