A “Sample Letter To Revoke Letter Of Intent” is a document. It cancels a previous agreement. This happens when plans change. Maybe a deal fell through. Or, someone found a better option.
Need to write such a letter? You’re in the right place. We know it can be tricky. That’s why we’re here to help.
We’ll share templates and samples. These will make writing your letter easy. Think of them as your starting point. Let’s get started!
Sample Letter To Revoke Letter Of Intent
[Your Name/Company Name]
[Your Address]
[City, State, Zip Code]
[Email Address]
[Phone Number]
[Date]
[Recipient Name/Company Name]
[Recipient Address]
[City, State, Zip Code]
**Subject: Revocation of Letter of Intent**
Dear [Recipient Name],
This letter serves as formal notification that [Your Name/Company Name] is revoking the Letter of Intent (LOI) dated [Date of LOI] concerning [Briefly describe the subject of the LOI, e.g., the potential acquisition of Company X, the lease of property at Y address].
After careful consideration, we have decided not to proceed with the transaction outlined in the LOI. This decision is based on [ Briefly state reason, e.g., changes in market conditions, internal strategic realignment, inability to reach mutually agreeable terms].
We understand this may be disappointing, and we apologize for any inconvenience this decision may cause.
We appreciate your time and effort during our discussions.
Sincerely,
[Your Name/Company Name]
[Your Title, if applicable]
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How to Write a Letter to Revoke a Letter of Intent
Understanding the Gravity of Revocation
- A Letter of Intent (LOI) is a preliminary agreement. Revoking it shouldn’t be taken lightly.
- Ensure you’ve exhausted all other avenues before resorting to recission.
- Consider the potential ramifications on your relationship with the other party.
Crafting a Precise Subject Line
- Be forthright. A subject line such as “Revocation of Letter of Intent – [Date of LOI]” is optimal.
- Clarity averts ambiguity and sets the tone for the letter.
Employing a Respectful Salutation
- Begin with a formal greeting, such as “Dear Mr./Ms./Dr. [Last Name]”.
- Maintain a professional demeanor, even when delivering unwelcome news.
- Avoid overly familiar or casual greetings.
Articulating the Reason for Revocation
- Clearly and concisely state your reason for revoking the LOI.
- Be factual and avoid accusatory language. For instance, state “Due to unforeseen shifts in market conditions…” rather than “Because you failed to meet your promises…”.
- Substantiate your reasons with specific examples, if prudent, but avoid excessive detail.
Acknowledging the Prior Agreement
- Briefly acknowledge the existence of the Letter of Intent.
- Reference the date on which the LOI was originally executed.
- This demonstrates transparency and reinforces the gravity of your decision. For example: “This letter serves to formally revoke the Letter of Intent, dated [Date], pertaining to [Subject of LOI].”
Expressing Regret and Gratitude
- Even when revoking, maintain civility. Express regret that the agreement could not be consummated.
- Acknowledge any effort the other party invested in the process.
- A simple “We appreciate the time and effort your team dedicated to this endeavor” can mitigate potential friction.
Concluding with Professional Closure
- End with a formal closing, such as “Sincerely” or “Respectfully”.
- Include your typed name and signature.
- Consider offering a pathway for future collaboration, if genuinely feasible, but avoid making insincere overtures.
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Frequently Asked Questions: Revoking a Letter of Intent
This section addresses common inquiries regarding the revocation of a Letter of Intent (LOI). Understanding the implications and proper procedures is critical before proceeding with a revocation.
What does it mean to revoke a Letter of Intent?
Revoking a Letter of Intent means formally withdrawing your expressed intention to proceed with the proposed agreement or transaction outlined in the original LOI.
When can a Letter of Intent be revoked?
The revokability of an LOI depends on its specific terms. Some LOIs are non-binding and can be revoked at any time, while others contain binding clauses that may restrict revocation.
How should a Letter of Intent be revoked?
Revocation should be done in writing, clearly stating the intention to revoke the LOI and delivered to all relevant parties involved in the original agreement.
What are the potential consequences of revoking a Letter of Intent?
The consequences depend on the terms of the LOI. Revoking a binding portion of an LOI could result in legal action, including claims for damages incurred as a result of the revocation.
What information should be included in a revocation letter?
The letter should include the date of the original LOI, a clear statement of revocation, the reasons for revocation (if required by the LOI), and any necessary disclaimers regarding ongoing obligations.