Letter of Intent Cost

Clients Rate Lawyers on our Platform 4.9/5 Stars
based on 2,801 reviews

Jump to Section

Need help with a Letter of Intent?

Post Project Now

Post Your Project (It's Free)

Get Bids to Compare

 Hire Your Lawyer

What does a letter of intent cost? This question is often asked by individuals entering a business agreement who need to send a letter of intent. Let’s explore this question and review general information about letters of intent and why they are used.

How Much Does a Letter of Intent Cost?

A letter of intent is a formal letter that outlines an understanding between two parties who will eventually finalize an executed contract. Letters of intent, sometimes abbreviated as “LOI,” are not legally binding documents but will often serve as an outline for a final contract that will be legally binding.

Letters of intent are often used for business or real estate transactions. For example, when one party intends to purchase a business or piece of real estate, they send the other party a letter of intent that outlines the terms and conditions of the prospective deal and highlights areas that need further negotiated.

Other purposes for letters of intent can include:

  • Employment. Suppose you are interested in working with a company. In that case, you can send a letter expressing your interest in a particular position.
  • Acquisition. Similar to a letter of intent to purchase a business, acquisition letters of intent will state the sender’s intentions and outline potential terms and conditions of transactions focused on acquisitions.
  • Scholarship Acceptance. Students who receive academic or athletic scholarships to universities will often send a letter of intent to accept the scholarship and attend the school.
  • Graduate School. Many graduate school applications require a letter of intent as part of the application process. This letter of intent would inform the university that you have submitted an application and intend on attending the school.

It is important that a letter of intent is professional and clearly states the sender’s purpose and intentions. Unfortunately, many people choose to consult with a lawyer to draft a letter of intent to ensure it is written correctly and free from mistakes.

Based on ContractsCounsel’s marketplace data, the average cost of a project involving a letter of intent is $585.00.

What’s Included in a Letter of Intent?

A letter of intent should be drafted as a formal business letter, including the date and proper business heading. In addition, the following information should be included in a letter of intent:

  • Heading. The heading of a business letter must include the sender’s and recipient’s information. A proper greeting follows the heading to a specific individual or “To Whom it May Concern.”
  • Subject statement. The first line of the letter of intent should clearly state the letter's purpose.
  • The proposed agreement. The body of the letter should focus on the proposed agreement and outline the potential terms and conditions of the transaction. This should include pre-conditions requiring each party to produce specific documents before signing a formal contract.
  • “Subject to contract.” Letters of intent are not legally binding. Therefore, every LOI should include the phrase “subject to contract” to remind both parties that these terms will only be legally binding once a formal contract is executed.
  • Privacy Provisions. While letters of intent are not legally binding, they often include lawfully binding provisions to protect both parties. For example, provisions may include a standard confidentiality agreement, a non-solicitation agreement, or an exclusivity agreement.
  • Professional Closing. The letter should end with a professional closing and a signature from the sender.
Meet some lawyers on our platform

Michael M.

11 projects on CC
View Profile

Michael K.

58 projects on CC
View Profile

Brad H.

8 projects on CC
View Profile

Gregory F.

2 projects on CC
View Profile

Examples of Letter of Intent Projects

Letter of Intent Drafting Services

Whether a letter of intent is for the purchase of real estate or a job application, this document outlines the main terms of a prospective deal. Therefore, it needs to be drafted professionally and correctly.

Many people who need a letter of intent often hire an attorney for drafting services. Attorneys familiar with letters of intent will be able to draft a professional letter that clearly states the client’s position and expectations of the potential deal or transaction.

Letter of Intent Review Services

It is recommended that you have the letter reviewed by an attorney before sending it to the recipient. This is especially important if the letter of intent is for real estate or a business. Although letters of intent are not legally binding, they show a preliminary commitment and must be drafted correctly.

A lawyer will review the letter and make necessary corrections or suggestions to ensure it best represents your intentions and commitment.

Letter of Intent Drafting Cost

Hiring a lawyer to draft a letter of intent will incur legal fees. Fees usually include:

  • Consultations
  • Time to draft the letter
  • Any revisions necessary

ContractsCounsel’s marketplace data shows that the average letter of intent drafting cost is $600.00 across all states.

Letter of Intent Review Cost

If you draft your letter of intent and hire a lawyer to review it, the lawyer will charge you for their time and services. The lawyer will take their time and legal expertise to review the letter and ensure it contains all necessary information.

ContractsCounsel’s marketplace data shows that the average letter of intent review cost is $450.00 across all states.

How Do Lawyers Charge for Letters of Intent?

Hourly Rates for Letters of Intent

It is common for lawyers across all legal industries to use an hourly rate fee structure to bill their clients. In the fee agreement, the lawyer will provide the client with their hourly rate and then track their time working on a case.

Once the legal services have ended, the lawyer will bill the client for the total number of hours spent on the case. Under this fee agreement, clients won’t know the total cost of legal fees until after the completion of the project. This can make budgeting difficult if the client has concerns about legal fees to maintain good communication with the lawyer to receive updates on their bill.

The marketplace data for ContractsCounsel shows that the average hourly rate for a business lawyer ranges from $200 - $350 per hour.

Flat Fee Rates for Letters of Intent

Lawyers hired for a specific legal project, like drafting a letter of intent, will often forgo hourly rate fee structures and instead use a flat rate structure. This is a more straightforward way of billing clients for legal projects.

Under a flat fee rate structure, the attorney will assess the task and then quote the client a fee for legal services. This fee usually encompasses all work that needs to be done to complete the project. Still, the client should ask about any additional charges for work that may not be included.

Clients benefit from flat rate fees because they know exactly how much legal services will cost for their project. In addition, lawyers benefit by receiving payment for the work upfront, avoiding tracking their hours, and sending clients multiple bills.

ContractsCounsel's marketplace data shows that a lease-purchase agreement's average flat fee rate is $585.00.

Get Help with a Letter of Intent

Do you need help with a letter of intent project? If so, post a project in ContractsCounsel’s marketplace to receive flat fee bids from business lawyers to handle your project. All lawyers on the ContractsCounsel’s platform are vetted by our team to make sure you are provided with top tier service.

How ContractsCounsel Works
Hiring a lawyer on ContractsCounsel is easy, transparent and affordable.
1. Post a Free Project
Complete our 4-step process to provide info on what you need done.
2. Get Bids to Review
Receive flat-fee bids from lawyers in our marketplace to compare.
3. Start Your Project
Securely pay to start working with the lawyer you select.

Meet some of our Lawyers

Antoine D. on ContractsCounsel
View Antoine
Member Since:
February 7, 2022

Antoine D.

Free Consultation
Get Free Proposal
Fort Lauderdale
6 Yrs Experience
Licensed in FL
Howard University School of Law

In his firm, Talented Tenth Law, Antoine focuses on helping people maximize their protection and prosperity in the courtroom and the boardroom. His firm’s services include representing people in lawsuits involving breach of contract, many types of civil lawsuits and helping business owners win government contracts among other things.

Tom L. on ContractsCounsel
View Tom
Member Since:
February 7, 2022

Tom L.

Managing Member
Free Consultation
Get Free Proposal
15 Yrs Experience
Licensed in TX
Louisiana State University Law Center

Tom is a former chief legal officer of public and private companies. He has extensive experience in mergers & acquisitions, commercial transactions, joint ventures, finance, securities laws and general corporate law across a broad range of industries, including construction, consumer products, e-commerce, energy and healthcare. As an attorney who practiced at two different Top 50 international law firms, he can deliver "Big Law" service at a competitive price. Prior to becoming a lawyer, Tom served as an officer in the U.S. Army and attained the rank of Captain. He served a tour in Iraq where he led a reconnaissance platoon and was awarded the Bronze Star Medal.

Craig Y. on ContractsCounsel
View Craig
Member Since:
February 8, 2022

Craig Y.

Free Consultation
Get Free Proposal
New York
26 Yrs Experience
Licensed in NY
New England Law - Boston

Craig E. Yaris is a partner at Parlatore Law Group, with the experience and drive to handle all your Franchise, General Business Practice, and Mediation needs. As a former small business owner and Chief Operating Officer of a franchisor himself, Mr. Yaris is passionate about promoting business growth. He has experience handling daily operations, employee disputes, and negotiations of pertinent contracts for a franchise company with 100 locations in five states, where he organized and conducted semi- annual meetings to educate and inform franchisees of best practices for improved growth. In addition, Mr. Yaris was responsible for the preparation and filing of the UFOC (Uniform Franchise Offering Circular) in several states and is well-versed in business formation. Between his time as Franchisor and Conflict Resolution Specialist, Mr. Yaris was the Co-Founder and Chief Operating Officer of an online company whose goal was to help inform marketers and business owners of the fast-paced and ongoing changes within their specific verticals. This experience helped him hone his research and writing skills and prepared him for the cloud-based aspects of Parlatore Law Group. Mr. Yaris also has extensive experience in public speaking, as he has planned and delivered several keynote addresses and educational seminars for many New York-based organizations, and as a Continuing Education Instructor for Hofstra University. Prior to joining Parlatore Law Group, Mr. Yaris worked as a Patient Advocate, and more recently, a Conflict Resolution Specialist, where he mediated and resolved disputes on behalf of patients with insurance companies. In this role, he negotiated for coverage of previously denied medications and medical procedures as well as successfully mediated disputes between individuals and business partners which would have otherwise resulted in protracted litigation. In addition, he has experience mediating employer and employee disputes as well as helping resolve family conflict. He has also studied and attended many Non-Violent Communication (NVC) workshops and strives to bring these tools and methods to all of his mediations. His variety of experiences speak to his ability to handle small business needs at all stages of business growth and development. Mr. Yaris also has experience with business growth and development, as he has worked with several small business on creating and implementing strategies for steady growth. In addition, to spending time with family, Mr. Yaris volunteers his time helping spread the message of the ACLU and he supports many local charities focused on families and children. He is admitted to practice in New York.

Amy P. on ContractsCounsel
View Amy
Member Since:
February 9, 2022

Amy P.

Principal Attorney
Free Consultation
Get Free Proposal
Edmonds, WA
18 Yrs Experience
Licensed in WA
The University of Montana School of Law

Amy has served as outside general counsel and litigator to established businesses throughout western Washington since 2010. Her passion and focus is providing the best possible representation for clients in the construction, transportation and hospitality industries.

Jacob O. on ContractsCounsel
View Jacob
Member Since:
February 14, 2022

Jacob O.

Contracts Manager
Free Consultation
Get Free Proposal
Iowa City
2 Yrs Experience
Licensed in MO
University of Iowa - Law

I am bar certified in the lovely state of Missouri. I received my J.D. from The University of Iowa College of Law (2019) and my B.A. in Political Science from BYU-Idaho (2015).

Nicholas V. on ContractsCounsel
View Nicholas
Member Since:
February 28, 2022

Nicholas V.

Free Consultation
Get Free Proposal
Denver, CO
4 Yrs Experience
Licensed in CO, NY, TX
Texas A&M University School of Law

I am a solo practitioner with offices in Denver, Colorado and Austin, Texas with a focus on general business and real estate contracts.

Kelvin R. on ContractsCounsel
View Kelvin
Member Since:
February 25, 2022

Kelvin R.

Free Consultation
Get Free Proposal
Dallas, TX
25 Yrs Experience
Licensed in TX
Tulane Law School

Experienced business and contract lawyer. Our firm specializes in commercial litigation and dispute resolution.

Jessee B. on ContractsCounsel
View Jessee
Member Since:
March 14, 2022

Jessee B.

Attorney | Creative at Law
Free Consultation
Get Free Proposal
9 Yrs Experience
Licensed in TN
The University of Memphis—Cecil C. Humphreys School of Law | Juris Doctor, Law)

Whether you're thinking of starting your own business and not sure how to bring your vision to life, or you're a business owner, creative professional, creator, influencer, artist, musician, startup, nonprofit, or entrepreneur who wants to grow your business and protect your content and brand—I can help. Get experienced legal counsel, quality representation, and creative solutions customized to fit your unique needs. Services include: entity formation, business issues, planning, financing, and strategy; contract drafting, review, and negotiation; intellectual property protection; copyright and trademark filing; startup and nonprofit setup and guidance; real estate matters; property purchase, sale, and leasing; assistance with legal issues related to content creation, branding, design, writing, film, music, art, entertainment, social media, e-commerce, marketing, advertising, data and privacy compliance, and more. Questions? Let's work together. Reach out and say hello.

Stephanie C. on ContractsCounsel
View Stephanie
Member Since:
March 8, 2022

Stephanie C.

Free Consultation
Get Free Proposal
Niceville, FL
2 Yrs Experience
Licensed in AL
Southern University Law Center

Alabama Licensed Attorney offering Freelance Services for Wills, Trusts, Probate, Family Law Documents, Criminal Matters, and Real Estate Closings.

Benjamin V. on ContractsCounsel
View Benjamin
Member Since:
March 10, 2022

Benjamin V.

Free Consultation
Get Free Proposal
3 Yrs Experience
Licensed in CO
Columbus School of Law, Catholic University of America

My practice involves counseling businesses and individuals on a variety of contracts, such as business formation, technology/IP, real estate, leases, and even domestic relations agreements. Much of my practice is dedicated to litigation. As such, I approach contract and transactional work from a litigation perspective by advising clients of the risks involved in failing to develop proper contracts. It takes more than knowledge of the law to be a good lawyer. A good lawyer is honest and forthcoming with clients and has a counseling ethos. And, to me, a good lawyer stands in the shoes of the client when considering how to best serve that client. Whether my client is a business or an individual, I am passionate about helping my clients understand their rights, responsibilities, risks, and possibilities.

David H. on ContractsCounsel
View David
Member Since:
March 10, 2022

David H.

Technology Contract Attorney
Free Consultation
Get Free Proposal
Fort Wayne, Indiana
11 Yrs Experience
Licensed in MI
Western Michigan University - Thomas M Cooley Law School

Michigan licensed attorney. A compelling combination of technology, sourcing, sales, and legal experience. Over 20 years in technology positions negotiating technology engagements and contracts. General practice legal experience. Significant IT contracts experience (from IT sourcing/procurement) with the State of Michigan and Zimmer Biomet (Fortune 500). Excellent people, negotiation, and writing skills; keen eye for continuous improvement. Trusted business partner co-leading or supporting cross-functional integrated business/IT projects.

Find the best lawyer for your project

Browse Lawyers Now

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call