Keeping one step ahead

Click here to read our Legal Publications and Legal Tips

What our clients say

"Its refreshing to have a new law firm on the scene which is challenging the more formal companies. I found Acumen very friendly, professional and thorough in my first dealings with them."Nigel PamplinPrime Education

"I have had need of Josh's and Acumen's services over the past couple of years, but fortunately I couldn't be in better hands. I couldn't give a stronger recommendation."Jonathan GlendenningSummer Rain Films Ltd

"Tegen Ltd has used Penina’s services for a number of our businesses legal requirements. We thoroughly recommend the services and advice that she and her team provide."Richard SmithTegen Ltd

"...Acumen has proven to be an essential and trusted partner for the last 4 years. Through their advice, assistance and top quality work has consistently delivered excellent ROI..."Robin ScottMakemedia

"I have used ACUMEN BUSINESS LAW on many occasions since switching to them. They’re a real breath of fresh air and they get the job done. I just wish I had come across them beforehand."Joakim RothLight Foot LED

"We have used ACUMEN BUSINESS LAW and have been absolutely delighted with the level of understanding of our business that they have..."Jon ClaysonHunters Letting Limited

"...we have used Acumen Business Law several times, not once have they failed to deliver the right result. Highly recommended."Kevin ByrneCheckatrade.com

Do you know about…… Letters of Intent

Also known as 'Heads of Terms' or 'Memoranda of Understanding' a Letter of Intent is a document which can be used as a means of recording the progress of commercial negotiations in writing. They can be a useful tool for businesses wishing to formalise the stages between initial negotiations and completion.

What is it used for?

A letter of intent can be used as a form of confidentiality agreement to prevent a third party disclosing confidential information about your business during negotiations to others or to use it for any purpose other than the transaction;
As an exclusivity agreement or lock out agreement to ensure that parties to a prospective deal negotiate solely with each other for a period of time;
To cover costs incurred prior to entering into a final contract and compensate for costs incurred if one of the parties acts in breach of the agreed terms;
To cover the commencement of work or interim services provided pending further negotiations;
To provide an outline of the parties' intentions as a solid structure for negotiating the main contract and to determine in advance the way in which another party operates both professionally and personally.

Is it legally binding?

The issue of a letter of intent's legality can be problematic. If it is labelled 'subject to contract' it would appear that the parties do not intend for it to be legally binding until a further contract is entered into. However, case law has established that in some circumstances the parties' conduct will have led to an implied binding contract on the terms of a letter of intent.

What to do next?

There are a number of legal points to consider before entering into a letter of intent such as its duration, legality, financial limits and scope of work covered. If you have a letter of intent in place or are considering entering into commercial negotiations and would like to talk to our team of Commercial Lawyers, please contact Penina Shepherd at Acumen Business Law on 08458 678978 or email penina.shepherd@acumenbusinesslaw.co.uk

You'll be glad we are on your side

What our clients say

Do you know about…… Letters of Intent

Join us