Legal Definitions - preliminary letter

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.