How Do You Draft A Letter Of Intent When Buying An Aircraft?

The LOI serves as a formal, preliminary agreement that outlines the basic terms and conditions of the aircraft transaction. While not legally binding, it sets the framework for the eventual purchase agreement. Begin with the date, name, address and contact information at the top of the page. Address the LOI to the seller or their representative and include specific details about the aircraft such as make, manufacturer, serial number and registration. Specify the proposed purchase price, currency and the payment terms. Include details on how the money will be paid. For example, will you be using Escrow? Establish a timeframe for inspections, record reviews and any other due diligence activities. State that if any issues are found, you may negotiate changes to the purchase terms or, in extreme cases, withdrawn from the transaction. Outline your specific requirements and indicate a proposed delivery date along with the location of the closing. Detail the responsibilities of each party regarding title transfer, possession and documents. Remind the seller that any information you disclose is confidential and highlight that the LOI will be null and void, if not accepted within a specific timeframe. Identify the governing law for the transaction.

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