VRN, May 2017
Letter of Intent: Less Can Be More
By: Lori Kilberg and Benno Rothschild
Retail lease negotiations can be time consuming and costly. In almost every instance, we recommend outlining in writing the basic lease terms before drafting the actual lease agreement, whether or not the parties execute a formal Letter of Intent (LOI). The LOI offers the parties the opportunity to determine whether both are satisfied with the transaction’s basic economics and critical business terms. There must be a balance between moving quickly to lease negotiations versus entering into a detailed LOI. The latter involves pre-negotiating sensitive issues of concern to streamline lease negotiations, the former using more general terms for flexibility and limiting the time spent working on a LOI…
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