This serves as a form of "assurance" to the other party that a company is serious in its intentention to pursue the business in discussion without entering into any binding legal obligation.

Preview

WHEREAS:-

A.     COMPANY is engaged in the business of -

[Describe Services]

 [Hereinafter "The Services"] and has considerable skill, knowledge and experience in that field.

B.     In reliance upon that skill, knowledge and experience _____[your company name] is desirous of engaging Company to provide their services in relation to   " the Services"; and

C.     Parties are in the process of negotiating and finalising the agreement for such services and_______ [your company name] is in principle, agreeable to the rates that have been discussed.

 NOW, THEREFORE IT IS HEREBY AGREED AS FOLLOWS:

1.                  Company shall provide “the Services” as set out in Schedule 1 to____[your company name] at the following prices subject to the execution of a formal contract:-

                        [INSERT CONSIDERATION OR PRICES]