The Simple Letter of Intent is a crucial preliminary document used in Pakistani business transactions to outline the basic understanding between parties before proceeding with a formal agreement. It serves as a roadmap for future negotiations while documenting key terms and conditions that parties intend to include in their final agreement. Under Pakistani law, particularly the Contract Act 1872, while a Letter of Intent is generally non-binding in nature, it can include specific binding provisions such as confidentiality or exclusivity clauses. This document is particularly useful in complex commercial transactions, mergers and acquisitions, real estate dealings, and joint venture arrangements where parties need to document their preliminary understanding before committing to detailed due diligence or formal agreements. The document helps establish clear communication channels and basic terms while providing a framework for moving forward with negotiations.

1. Date and Address Block: Full date and recipient's complete address details

2. Subject Line: Clear identification of the proposed transaction or relationship

3. Opening Salutation: Formal greeting to the recipient

4. Introduction of Parties: Clear identification of both the sender and recipient, including full legal names and addresses

5. Purpose Statement: Clear statement of intent regarding the proposed transaction or relationship

6. Key Terms: Brief outline of the fundamental terms being proposed

7. Timeline: Proposed timeline for moving forward and duration of the LOI

8. Non-Binding Statement: Clear statement about whether the LOI is intended to be binding or non-binding

9. Closing: Formal closing statement and signature block