I’m about to submit my first LOI and have a question on what level of detail needs to be in the contingencies section.
I see that Jordan has a good list of different types of contingencies, but advises to not go too heavy on the qty you list because it could scare the seller away.
I have seen another LOI template that is pretty straightforward/short/vague:
“Before parties can reach a final agreement, [Buyer] must be satisfied with the due diligence processes, all information and documents that [Seller] provides, as well as the negotiation of employment contracts.”
How specific should the LOI Contingency section be? Is it better to be vague to 1) not scare the seller with a list, and 2) protect ourselves in case we accidentally forget something on the list (if we specifically make a list of contingencies, but ran across something we didn’t’ like, but it wasn’t on our list)?
Thanks in advance,
Ed
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