Offer Letter
In a website sale, an Offer Letter is a Letter of Intent (LOI) which is a non-binding legal document that outlines an agreement between the buyer and seller before they finalize the final binding purchase agreement at a later date.
The Offer Letter may contain certain conditions that need to be met and fulfilled before a binding agreement is reached such as a period of due diligence by the buyer. The Offer Letter serves to move both parties one step closer to finalizing the deal.
Even though an Offer Letter is non-binding, it may include certain clauses that may be binding such as a no-shop clause whereby the seller is not allowed to shop the website around after the Offer Letter is signed.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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