Letter of Intent (Joint Venture) (50/50 Ownership)

Summary

This letter of intent may be used in a potential joint venture transaction in which a joint venture (JV) is formed by two parties, each owning an equal 50% interest in the JV. In Canada, a JV may be in the form of a corporation, partnership (either limited or general) or contractual JV. Letters of intent (LOIs) summarize the intended terms and conditions of a potential transaction. They are typically drafted and signed early in the negotiation process and are useful in focusing the parties' attention on key issues that may arise in the proposed joint venture. Letters of intent are typically non-binding unless all or a portion of the LOI expressly states that the parties intend for the LOI to be binding. LOIs that do not have a specific section dedicated to binding provisions should, at a minimum, explicitly state that all portions of the LOI are intended to be nonbinding. Otherwise, the parties may be at risk for creating unintentionally binding obligations on the parties. In keeping ...