Letter Of Intent To Hire: Presenting Employment Terms (2026)
Summary
- A letter of intent to hire can present terms before signing a contract
- A letter of intent may be binding or non-binding
- Letters of intent are usually followed by employment contracts
Contractors are different from at-will employees. Specifically, the terms of at-will employment are usually set by law. Contractors, on the other hand, have their job terms set by contracts. These contracts often begin with a letter of intent.
What Is a Letter of Intent to Hire?
A letter of intent to hire usually expresses an employer’s intent to hire a contractor. It often sets out some preliminary terms and may state the terms that remain to be negotiated.
How It Differs From a Job Offer
Contracts require mutual assent to be valid and enforceable. Mutual assent involves offer and acceptance. An offer includes clear terms that, when accepted, create a binding employment contract.
A letter of intent to hire is usually written so that it does not constitute an offer. Instead, letters of intent are typically written either as a term sheet or an invitation to negotiate the terms.
Whether It's Legally Binding
If written properly, a letter of intent to hire should not be binding. If it were binding, it would constitute a job offer rather than a letter of intent. Thus, it is important to use the right wording to avoid turning a job letter of intent into a job offer.
What to Include in It
A letter of intent should express the desire to hire the contractor. It should set out any terms of the employment and identify any terms that remain to be negotiated. For example, it may state that the company wishes to hire the contractor for a specified project upon negotiating and executing a final contract outlining the deadlines and pay.
How to Write One
A letter of intent should identify the employer and the contractor. It should also state any conditions for completing the contract. Some common conditions include:
- Negotiating the final contract terms
- Signing the completed employment contract
- Passing a background check
- Completing onboarding
- Finishing a probationary period
It should explicitly state that it does not constitute an offer and that it is subject to the final contract terms.
What the Candidate Does Next
After receiving the letter of intent to hire, a candidate will negotiate the final terms of the employment agreement. They will also fulfill any other steps needed to secure employment. At this point, they are not guaranteed employment. Instead, they only have an invitation to negotiate for employment.
Use the Right Letter of Intent to Hire for Your Purposes
An improperly worded letter of intent to hire can constitute a job offer. To avoid inadvertently hiring someone before completing a final employment contract, use the right form from ConsumerShield’s guides and templates.
Letters of Intent Templates
Create state-compliant Letters of Intent for real estate, business purchases, commercial leases, investments, hiring, donations, and stock purchases. Binding confidentiality & exclusivity clauses included. Download your LOI in minutes.
8 state forms included
View FormsLetters Of Intent Knowledge Base
No topics match your search.
ConsumerShield Premium
Unlimited legal forms and guide unlocks.
Prefer monthly? $19.99/mo — choose at checkout.
- Unlimited legal-form generation while active
- Unlimited guide unlocks across every available state
- Completed PDFs stay in your library
- Best for frequent document and guide work
Everything included
- Unlimited legal-form generation while active
- Unlimited guide unlocks across every available state
- Completed PDFs stay in your library
- Best for frequent document and guide work