The Small Business Letter Of Intent For Business is a crucial preliminary document used in Indonesian business contexts when small businesses wish to formalize their intention to enter into a business relationship or transaction. This document type is particularly relevant under Indonesian law, where small businesses (as defined by Law No. 20 of 2008) often need to document their preliminary agreements before proceeding with formal contracts. The LOI serves as a roadmap for future negotiations while protecting both parties' interests through basic confidentiality and exclusivity provisions. It includes essential elements such as party identification, proposed business terms, timelines, and non-binding clauses, while remaining simpler and more accessible than full commercial agreements. This document is especially useful in situations where parties need to demonstrate serious intent while still negotiating final terms, or when seeking preliminary approval from stakeholders.
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1. Header and Date: Official letterhead of the initiating party, full date, and reference number if applicable
2. Recipient Details: Full name and address of the recipient organization/individual
3. Subject Line: Clear indication that this is a Letter of Intent and brief description of the business purpose
4. Introduction: Identification of all parties involved, including full legal names, addresses, and business registration numbers
5. Purpose Statement: Clear statement of the business intention and scope of the proposed relationship or transaction
6. Key Terms: Outline of the fundamental terms and conditions of the proposed business relationship
7. Timeline: Proposed schedule for negotiations, due diligence, and execution of formal agreements
8. Confidentiality: Statement regarding the confidential nature of discussions and shared information
9. Non-Binding Statement: Clear statement that the LOI is non-binding except for specific clauses (such as confidentiality)
10. Closing and Signatures: Formal closing, space for signatures of authorized representatives from all parties
1. Financial Terms: Include when preliminary financial agreements or commitments need to be documented
2. Exclusivity Period: Include when parties agree not to negotiate with other parties for a specific period
3. Due Diligence: Include when specific due diligence requirements or processes need to be outlined
4. Governing Law: Include when dealing with parties from different jurisdictions or when specific legal framework needs to be established
5. Dispute Resolution: Include when parties want to specify preliminary dispute resolution mechanisms
6. Cost Allocation: Include when parties need to specify who bears the costs of preliminary activities
7. Conditions Precedent: Include when certain conditions must be met before proceeding with formal agreement
1. Preliminary Business Plan: High-level overview of proposed business activities or project scope
2. Timeline Schedule: Detailed timeline of key milestones and deadlines
3. Required Documentation List: List of documents and information required from each party for due diligence
4. Contact Details: List of key contact persons and their details from each party
Authors
Relevant legal definitions
Clauses
Relevant Industries
Retail
Manufacturing
Technology
Food and Beverage
Agriculture
Transportation
Construction
Professional Services
Healthcare
Education
Tourism
E-commerce
Creative Industries
Import/Export
Local Trade
Relevant Teams
Legal
Business Development
Operations
Commercial
Finance
Sales
Strategy
Corporate Affairs
Procurement
Executive Leadership
Relevant Roles
Business Owner
Managing Director
Business Development Manager
Operations Manager
Legal Counsel
Commercial Director
Partnership Manager
Project Manager
Chief Executive Officer
Chief Operating Officer
Procurement Manager
Sales Director
Strategy Manager
Financial Controller
General Manager
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