A letter of intent joint venture contract is a document which gives an outline of a joint venture contract between two or more companies, usually written by one of the parties, before the contract is finalised. A letter of intent, gives the basic terms and conditions of the joint venture contract, especially those involving a large financial deal, but is not binding and both parties may terminate it provided they give a valid reason.
Sample Letter of Intent Joint Venture Contract:
Goodwill Auto Enterprises
923 Rockford, Texas
CEO, Key Parts Group,
Subject: Letter of Intent for Joint Venture Contract
Dear Mr Tucker,
The purpose of the letter is to set forth our mutual agreement on a joint venture agreement between our company and yours. We stand by our decision to contribute $150,000 in the setting up of the new auto parts firm, Goodwill Parts Inc, and we will also provide our expertise and experience to help the company develop.
According to our previous discussions, your company Key Parts Group had agreed to invest an amount of $75,000 in the joint venture firm and we planned to divide the profits from the firm between ourselves where we shall have a right to 60% of the profits and your company shall be entitled to 40% of the revenues.
This letter is solely intended for the purpose of further discussions and other details of the related to the joint venture contract are enclosed herewith for your perusal.
CEO, Goodwill Auto Enterprises