Letter of Intent Sample for Renewal of Contract

LETTER OF INTENT (LOI): CONTRACT RENEWAL

DOCUMENT CONTROL

• Effective Date: [Date]
• Version: 1.0
• Jurisdiction: [State/Country]
• Scope: Renewal of [Name of Original Agreement] dated [Original Agreement Date]

1. LEGAL DISCLAIMER

NOTICE: This Letter of Intent ("LOI") is intended to outline the preliminary terms for the renewal of the existing contractual relationship between the Parties. While certain provisions herein (specifically Sections 4, 5, and 6) are intended to be legally binding, the parties acknowledge that this document serves as a bridge to a formal, definitive Renewal Agreement. This document does not constitute an offer capable of acceptance except as expressly stated herein.

2. PARTIES

• "Provider": [Full Legal Name of Provider], a [Jurisdiction] corporation, with its principal place of business at [Address].
• "Client": [Full Legal Name of Client], a [Jurisdiction] corporation, with its principal place of business at [Address].

3. OPERATIVE TERMS

1. Intent to Renew: Both Parties hereby express their mutual intent to renew the [Name of Original Agreement] (the "Original Agreement") for an additional term.
2. Renewal Term: The renewal term shall commence on [Start Date] and expire on [End Date] (the "Renewal Term"), unless terminated earlier in accordance with the terms of the Original Agreement.
3. Financial Terms: The consideration for the Renewal Term shall be [Insert Currency Amount] per [Month/Quarter/Year], payable in accordance with the payment schedule established in the Original Agreement.
4. Incorporation by Reference: Except as explicitly modified herein, all terms, conditions, representations, and warranties contained in the Original Agreement shall remain in full force and effect throughout the Renewal Term.
5. Confidentiality: The Parties agree that the terms and existence of this LOI shall be held in strict confidence and shall not be disclosed to any third party without the express written consent of the other Party, except as required by law.
6. Binding Effect: Notwithstanding the non-binding nature of the broader renewal intent, Section 5 (Confidentiality) and Section 7 (Governing Law) shall be legally binding upon the Parties upon execution.

4. GOVERNING LAW

This LOI shall be governed by and construed in accordance with the laws of [Jurisdiction], without regard to its conflict of laws principles.

5. SIGNATURES & ACKNOWLEDGMENT

IN WITNESS WHEREOF, the authorized representatives of the Parties have executed this LOI as of the date first above written.

FOR THE PROVIDER: Signature: __________________________ Name: [Printed Name] Title: [Title] Date: [Date]

FOR THE CLIENT: Signature: __________________________ Name: [Printed Name] Title: [Title] Date: [Date]

EXECUTION & ENFORCEMENT GUIDE

• Due Diligence Review: Ensure the "Original Agreement" is still valid and not subject to prior breach claims that could complicate the renewal process.
• Verification of Authority: Verify that signatories for both entities possess the corporate authority (via Board Resolution or Bylaws) to bind the organization to the financial terms stated in Section 3.3.
• Formalization Timeline: Establish a strict deadline (e.g., 30 days from signing this LOI) for the legal departments to draft and execute the formal "Renewal Amendment" to avoid operational gaps.
• Record Archiving: Once signed, append this LOI to the original contract file to ensure a continuous audit trail for compliance and accounting purposes.