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Simple English definitions for legal terms
preliminary letter
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A quick definition of preliminary letter:
A preliminary letter, also known as an invitation to negotiate, is a request for one or more offers as a first step towards creating a contract. It is also called an invitation seeking offers, invitation to bid, invitation to treat, solicitation for bids, offer to chaffer. It is different from an offer, which is a definite proposal to enter into a contract.
A more thorough explanation:
Definition: A preliminary letter, also known as an invitation to negotiate, is a solicitation for one or more offers as a preliminary step to forming a contract.
For example, a company may send out a preliminary letter to potential vendors asking for bids on a project. The vendors can then submit their offers, and the company can choose the best one to form a contract.
This type of letter is not a binding contract, but rather a way to start negotiations and gather information about potential offers.
Additional Example: A homeowner may send out a preliminary letter to contractors asking for bids on a home renovation project. The contractors can then submit their offers, and the homeowner can choose the best one to form a contract.
The examples illustrate how a preliminary letter is a way to gather offers and start negotiations before forming a binding contract. It allows the party sending the letter to compare offers and choose the best one for their needs.