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A Confirmation Letter of Intent is commonly used in Nigerian business transactions as a preliminary step before entering into a definitive agreement. This document is particularly valuable when parties need to formalize their preliminary understanding while maintaining flexibility for future negotiations. It serves multiple purposes: documenting the basic terms of a proposed transaction, demonstrating commitment to further discussions, and potentially securing exclusivity or confidentiality arrangements. Under Nigerian law, while most provisions in a Letter of Intent are typically non-binding, certain clauses can be specifically drafted to have binding effect. The document is especially relevant in complex transactions where detailed due diligence and negotiations are anticipated, such as mergers and acquisitions, joint ventures, or significant commercial partnerships. It helps manage expectations, establish timelines, and create a framework for moving forward while protecting both parties' interests during the preliminary stages of their business relationship.

1. Letter Header: Include date, reference number if applicable, and formal letterhead

2. Recipient Details: Full name and address of the recipient party

3. Subject Line: Clear indication of the subject matter and that this is a Confirmation Letter of Intent

4. Introduction: Identify the parties and reference any previous discussions or meetings

5. Purpose Statement: Clear statement of the intended transaction or relationship

6. Key Terms: Outline of the principal terms and conditions being considered

7. Timeline: Proposed schedule for moving forward and any critical dates

8. Non-Binding Statement: Clear statement about which elements are non-binding, if any

9. Closing: Formal closing, signature block, and company details