Offer to Purchase vs Letter of Intent

searcher profile

November 26, 2024

by a searcher from Harvard University - Harvard Business School in Calgary, AB, Canada

Does anyone have any insight into the differences between an Offer to Purchase and a Letter of Intent? The broker on my deal (<$10M purchase price) has a detailed OTP template. The typical sections on exclusivity, confidentiality, etc. are all binding as usual. The rest appears non-binding but if I terminate the deal is the onus on the buyer to prove that they are allowed to terminate?

Any help is appreciated.

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commentor profile
Reply by a professional
from University of Michigan in Detroit, MI, USA
Hi Anon, the devil is in the detail. Offer to Purchase, Letter of Intent, it doesn't matter--titles don't matter. What counts is the content. What are the exact terms of the OTP? What is the broker proposing you sign? Let me know if you want to discuss further. My law firm, Groundswell Advisors, LLP, is focused on serving the ETA community, and we'd be happy to help. Reach out at redacted
commentor profile
Reply by a professional
from University of Saskatchewan in Calgary, AB, Canada
Hey Anon, I am based in Calgary and happy to chat as well. Feel free to shoot me an email at redacted There are provisions that can be included in a LOI that are binding (i.e. confidentiality), but for the most part these should be non-binding agreements..
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