It's fairly common for parties negotiating deal to sell alarm accounts to utilize a Letter of Intent. LOI.  I don't find them useful, and that's probably because I have training as a litigator,  Far as I can tell the LOI can only get you into trouble.  If you're ready for an LOI then you may as well go to contract.  Too often a LOI is prepared by the parties before they even talk to a lawyer.  That can be a problem if the LOI is in fact a binding contract rather than a Term Sheet memorializing the discussions.  
    What's the difference?   A lot.  If you think your LOI is merely an expression of your intentions, your deal, then you need to be careful that it's written that way.  If you think your LOI sets forth all of the terms of your deal then you've just entered into a binding contract without first consulting your lawyer (hopefully for his sake).  If the LOI contains all of the elements of a binding contract then that's going to be your deal if one of the parties wants to stick to that agreement.  You won't get to start over with contract negotiations, and if you think that's a good thing because you've saved lots of time, then consider the LOI your agreement and close.  No need for a formal contract, you've got your LOI agreement.
    Often LOIs contain other provisions that the parties think important, and they are.  These include confidentiality agreements, non compete agreement and other terms that the parties understand should survive if they don't ultimately consummate a deal.  Those terms are important, but don't include them in your LOI unless your intent is to treat the LOI as your formal agreement.  
    So the evolution of the deal, on paper, should proceed with

  • Non Disclosure Agreement containing confidentiality and non compete and other terms
  • LOI or Terms of Sale
  • Agreement
  • Adjustment agreement
  • Closing documents

    Best not to skip a step.
contracts on sale - order at www.alarmcontracts.com - sale ends today

    Contract sale runs through January 5, 2016 5PM.  The discount will be accepted on all orders received between now and January 5, 2016 5 PM*.  This will definitely be the best deal of 2016.  Here's the deal:
    Buy 1 All in One** and get $100 off.  **excludes new fire with rider form
    Buy 2 All in One forms and get $100 off first and $200 off second and $50 off Disclaimer Notice and $100 off alarm.com rider.   Save up to $450.
    Buy 3 or more All in One forms and get same as above and $300 off the third form and $400 off the fourth form.  Save up to $1150.00
    The new Fire All in One with Security Rider $1250.00.  Save $400.00  Add the Commercial Fire All in One and the Commercial All in One and get $200 off each.  Save $600.00
    Qualifier Agreement  $1200.00   Save $300.00
    Nationwide DIY with monitoring  $3500.00  Save $1000.00
* Your order must be placed on line at www.alarmcontracts.com and received in our office no later January 5, 2016 5 PM EST.  Order must contain valid credit card payment.  Fill out the order form, add up your charges (we will check the arithmetic) and put in "promo" after your total.  Orders arriving after sale ends will be returned or with your approval charged regular published rates.  Orders will be processed in order received.  Rush orders, delivered by email within 48 hours, add 15%.
2016 updates are ready

    The Standard Form Agreements have been updated for 2016.  Probably the single most important change is in the "right to subcontract" provision.  We've added manufacturers and vendors to the "subcontractor" category who benefit by the protective provisions in the agreement.  This change was prompted by Honeywell's dealer agreement which requires that provision in the dealer's subscriber agreement.  We still have a separate Rider for alarm.com, which that vendor does require.  Other manufacturers, especially those who have gotten in on the RMR model by having its equipment communicate through its servers, are requiring protection from subscriber claims.  Other changes have been made and you can check with our Contract Administrator Eileen Wagda at 516 747 6700 ext 312 to see if your form needs updating.  We starting adding the updates several months ago so you may be up to date.  Keep in mind that our updates are free for 6 months and half price for 12 months.  Updates will be prepared and sent out after the new orders are processed so please be patient.  


Introducing the Commercial Fire All in One with Security Rider
The new form:    We have been asked to offer a combined Commercial Fire and Security Agreement.  The form starts with the Fire All in One and adds a Rider for security covered by the Security All in One.  

Who should use this form:  If you do primarily fire, use a single panel and add security equipment, then this form will be the easiest one to use.  If you do fire and security I still prefer the Fire All in One and the Commercial All in One as separate forms.