eSign Your Letter of Intent Online with Aadhaar
Lock in the key deal terms before the definitive contract. Legally valid under the Indian Contract Act 1872. Rs. 15 per signature.
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What is Letter of Intent?
A Letter of Intent (LoI) is a document that sets out the key terms of a proposed deal between two parties, before the full definitive agreement is drafted. It is commonly used in mergers and acquisitions, investment rounds, senior hiring, commercial real estate transactions, and large B2B procurement deals. Think of it as a halfway point between a casual handshake and a fully negotiated contract.
The defining feature of an LoI is that it is almost always a mix of binding and non-binding clauses. The commercial terms (price, valuation, closing date, scope of work) are typically non-binding so that both sides can walk away if due diligence turns up something unexpected. However, specific clauses are expressly binding: confidentiality of shared information, an exclusivity or no-shop period during which the recipient cannot negotiate with other parties, allocation of costs, governing law, and dispute resolution. This structure protects both sides during the gap between the LoI and the final contract.
In Indian M&A practice, LoIs are often accompanied by a non-disclosure agreement and a term sheet. The LoI frames the overall intent, the NDA protects confidential information, and the term sheet captures the specific commercial points. On the hiring side, LoIs are increasingly used for senior leadership roles where the final employment contract takes weeks to finalize but the candidate needs a written commitment before resigning from their current job.
Aadhaar eSign is a natural fit for LoIs because speed matters at this stage. Deals move quickly and printing, couriering, and scheduling signing meetings across cities wastes days. With SignSetu, the proposing party uploads the LoI, adds the recipient as a signer, and both parties sign with Aadhaar OTP from wherever they are.
Sign your letter of intent in 3 simple steps
No printing. No scanning. Just drop your PDF and sign.
Upload the LoI PDF
Draft the LoI with clear binding and non-binding language. Save as PDF and drop it into SignSetu.
Add both parties as signers
Enter the name and email of the proposing party and the recipient. Each party receives a secure signing link.
Both parties verify with Aadhaar OTP
Each party signs independently from their own location. Aadhaar OTP verifies identity. Once both have signed, the final LoI is emailed to both parties.
Who uses SignSetu for letters of intent?
Real scenarios where Aadhaar eSign saves days of coordination.
Startups raising funding
Lock in investor interest and key valuation terms before the full shareholder agreement and investment documentation is negotiated.
M&A buyers and sellers
Record the proposed deal price, closing timeline, and exclusivity period during due diligence.
Hiring managers for senior roles
Give senior candidates a written commitment on role, compensation, and joining date while the full employment contract is being drafted.
Commercial real estate buyers
Commit to a property deal subject to due diligence, title verification, and final agreement to sell.
Essential clauses in a letter of intent
Make sure your letter of intent includes these clauses before you sign.
- Identification of both parties with authorized signatories
- Background and purpose of the proposed transaction
- Proposed commercial terms (price, valuation, scope)
- Explicit statement of which clauses are binding vs non-binding
- Confidentiality obligations (drafted as binding)
- Exclusivity or no-shop period (typically 30, 60, or 90 days)
- Due diligence access rights
- Expiry date or sunset clause for the LoI itself
- Conditions precedent to moving to the definitive agreement
- Governing law and dispute resolution (drafted as binding)
Common mistakes to avoid
Legal validity of an eSigned letter of intent
Letters of Intent are fully eligible for Aadhaar eSign under Section 3A of the IT Act, 2000. The enforceability of any given LoI depends on the language used, not on how it was signed. Indian courts assess whether the document shows an intention to create legal relations (Section 10 of the Indian Contract Act, 1872) and whether the essential elements of a contract are present. If an LoI uses mandatory language like 'shall' and 'agrees to', and sets out clear obligations with consideration, it will usually be held binding even if it is titled 'Letter of Intent'. Conversely, if the LoI expressly states that it is non-binding except for specific carve-out clauses, Indian courts will respect that. The Supreme Court has repeatedly held that substance prevails over form in contractual interpretation. The practical takeaway: draft the LoI with clear, intentional language about which parts are binding. For LoIs in M&A and investment contexts, confidentiality, exclusivity, and dispute resolution should always be drafted as binding clauses, while the commercial terms should remain non-binding until the definitive agreement is signed. Stamp duty is usually not applicable to non-binding LoIs. LoIs do not require notarization or registration unless they transfer an interest in immovable property, in which case the Registration Act 1908 applies and Aadhaar eSign is not available.
Reference: Indian Contract Act 1872 + Section 3A, IT Act 2000
Powered by eMudhra
Every signature is processed via eMudhra, a CCA-licensed eSign Service Provider (ESP) authorized under the IT Act, 2000.
Important note
If your LoI creates a fully binding purchase obligation for immovable property, stamp duty and registration may apply. In that case, consult a property lawyer before choosing eSign.
Transparent, pay-as-you-go pricing
Pay only for what you sign. No subscription. No minimums.
Proposer + recipient = Rs. 30
See full pricing detailsFrequently asked questions
Everything about eSigning your letter of intent in India.
Is a Letter of Intent legally binding in India?
What is the difference between an LoI and an MoU?
Can I use an LoI for a job offer?
How long is an LoI usually valid?
Is an eSigned LoI enforceable in court?
Do I need to pay stamp duty on an LoI?
Can multiple parties sign a single LoI?
Related document guides
Other documents you can eSign with Aadhaar on SignSetu.
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