§18.2 - Letter of Intent

• Jurisdiction: Washington

§18.2 LETTERS OF INTENT

The initial step in consummating a commercial lease often is a letter of intent or "term sheet." This typically is a short document that may be in letter or outline form. A sample letter of intent is included as Form 18-5 on the CD accompanying this deskbook. The principal economic terms of the proposed transaction are addressed in this document, such as a general description of the premises to be leased, length of term, rent, allocation of operating expenses, allocation and amount of commissions, other financial terms (such as payment for tenant improvements), and any other item that the parties consider to be "essential" to the transaction.

Letters of intent are not binding on the parties. See Keystone Land & Dev. Co. v. Xerox Corp., 152 Wn.2d 171, 94 P.3d 945 (2004). However, a letter of intent may create a contractual...