Letter of Intent
A Letter of Intent (LOI) is a document signed between two parties when they wish to commence formal negotiations.
Last updated October 23, 2025
Suitable for Australia
Create & Customise Legal Templates Online
What is a letter of intent?
What is a letter of intent?
When should you use a letter of intent?
When should you use a letter of intent?
What should be in a letter of intent?
What should be in a letter of intent?
How to create a legal document
- check_circle
Access the Document Library
- check_circle
Select the template that matches your needs
- check_circle
Customise by adding or removing clauses with assistance from Lawpath AI
- check_circle
Personalise with your headers, footers, logos, or additional text
- check_circle
Store all documents securely in your account for easy access
Frequently asked questions
Is a letter of intent legally binding in Australia?
keyboard_arrow_upHow does a letter of intent protect my confidential information?
keyboard_arrow_upWhat happens if negotiations break down after signing?
keyboard_arrow_upCan I use this document for any type of negotiation?
keyboard_arrow_upWhat are the main risks of using a letter of intent?
keyboard_arrow_upHow does this differ from a memorandum of understanding?
keyboard_arrow_upWhat steps should I take after signing?
keyboard_arrow_upView Sample Letter of Intent
The Legal Risk Score of a Letter of Intent Template is Low
Our legal team have marked this document as low risk considering:
- The document outlines that the terms within the Letter of Intent are not intended to be legally binding except where explicitly stated, which implies there is a risk that commitments made during this stage might not be enforceable.
- Each party bears its own costs related to the negotiation and drafting of the Proposed Agreement, regardless of whether the agreement proceeds, which could result in financial loss if the agreement does not materialize.
- The Letter of Intent includes a clause that allows either party to terminate negotiations at any time without explanation, which introduces uncertainty and the potential for abrupt cessation of discussions without recourse.
Meet Our Users
Articles about Letter of Intent
No Regrets - Legal Contract Negotiation
Read this article for some important notes on ethical legal contract negotiation.
Memorandum Of Understanding vs Letter Of Intent Differences
A memorandum of understanding and a letter of intent differ largely in regards to their legality. Read our article to find out which one you need.
What to Include in a Memorandum of Understanding
Not sure what a Memorandum of Understanding is, or what you should include? This guide will help clarify some questions you might have.
The Lawpath Blog
Stay up to date with legal concepts, tactics and strategies for your business
What Is An Engagement Letter?
Raja Abbas Content Writer Based in Sydney, Raja is a law student enrolled in a Bachelor of Laws and Bachelor of Communications (Writing and Publishing) at the University of Technology Sydney. He is passionate about transferring knowledge in relation to businesses, legal advice and marketing direction. Raja has experience working in immigration law and is […]
How to Onboard a New Employee Remotely
Trying to onboard an employee remotely? Not sure where to start? This article will cover the ins and outs of the entire process.
8 Essential Legal Documents for Startups
Legal documents for startups are so important. They can minimise the risk of mistakes which would be costly down the line.
Term Sheet vs Memorandum of Understanding
Looking to understand the difference between a term sheet and a memorandum of understanding?Read this article to find out what they are and when to use them.
How to Write a Letter of Demand in Australia (+Template)
The thought of legal action due to debt can be daunting. Start with a letter of demand to recuperate unpaid debt — template inside!
Looking for more documents?
Privacy Policy
A Privacy Policy outlines how your business will use, store and collect your customers' information. A Privacy Policy is required by law in certain circumstances.
Loan Agreement
This Loan Agreement can be used by lender when offering a loan to a Borrower.
Non-Disclosure Agreement (Mutual)
A Non-Disclosure Agreement (Mutual) allows you and another party to share confidential information while legally forbidding either party from disclosing that information to any other person or entity.
Non-Disclosure Agreement (One Way)
A Non-Disclosure Agreement (One Way) allows you and another party to share confidential information while legally forbidding the other party from disclosing that information to any other person or entity.
Business Sale Agreement
A Business Sale Agreement is used to clearly set out all relevant terms of the sale when selling or buying a business.
Shareholders Agreement
A Shareholders Agreement allows you to clarify the relationship between shareholders of your company.
Services Agreement (Pro-Supplier)
This Services Agreement (Pro-Supplier) sets out the relationship between you, the service provider, and the business receiving the services. This version of the Services Agreement is drafted in favour of the supplier from a commercial and legal perspective.
Discretionary Trust Deed
A Discretionary Trust Deed is used to establish a discretionary trust in any state or territory in Australia.