Chapter 10b: Discussion Questions & Activities
Discussion Questions for Chapter 10B
- What are the primary components of a letter of intent, and why are they important?
- How does a letter of intent help protect the interests of both parties involved in a deal?
- In what ways can a letter of intent be iterative, and why is this process beneficial?
- How does due diligence factor into the drafting and signing of a letter of intent?
- Why is it important for a letter of intent to outline responsibilities and timelines?
- How can a letter of intent contribute to the success of environmental sustainability initiatives in the textile industry?
- What are some common pitfalls to avoid when drafting a letter of intent?
- How does the inclusion of confidentiality agreements in a letter of intent benefit both parties?
- What are the differences between a letter of intent and a final contract?
- How can AI help in drafting a letter of intent, and how might it hinder the letter’s quality?
Activity 1: Evaluating a Letter of Intent
Objective: Analyze and evaluate the effectiveness of a sample letter of intent.
Instructions:
- Choose a sample letter of intent provided in the appendix, from the instructor, or find one online. It can be challenging due to the private nature of such letters.
- Evaluate the LOI based on its components, clarity, and comprehensiveness.
- Answer the following questions:
- What are the key components included in the LOI?
- How well does the LOI outline the responsibilities of each party?
- Is the timeline for negotiations and implementation clear?
- Are confidentiality and due diligence addressed adequately?
- How effective is the LOI in conveying the preliminary commitment of the parties involved?
- Answer the following questions:
- Form small groups to discuss your findings. Compare and contrast the strengths and weaknesses of the sample LOIs.
- Present your analysis as a group to the class, highlighting key insights and recommendations for improvement.
Activity 2: Creating a Letter of Intent for an Environmental Action Pact
Objective: Draft a letter of intent for a real or hypothetical environmental action pact, such as the Fashion Pact.
Instructions:
Choose a real or hypothetical retail or textile business to pledge joining an environmental action pact (e.g., the Fashion Pact, the UN Global Compact, Science Based Targets initiative (SBTi), RE100, Plastics Pact Network).
- Write a letter in a letter template. Use one from Word by going to File, New, New from Template, then type “Letter” in the search area. You can also find one online.
- Include the following information in the letter:
- Affirmation of Understanding: Acknowledging understanding of the pact’s vision, mission, and key objectives (e.g., net-zero emissions, biodiversity protection, circularity).
- Expression of Intent to Join: A clear statement of the company’s intention to become a signatory or member.
- Commitment to Principles: An agreement to adhere to the core principles and ambitions of the pact.
- Willingness to Engage: A declaration of readiness to participate in relevant working groups, reporting mechanisms, and collaborative initiatives outlined by the pact.
- Non-Binding Clause: Crucially, it would state that the letter itself is non-binding and the formal commitment would be subject to a definitive agreement (e.g., signing the actual pact charter).
- Company Name & Leadership: End it by having a signature by a high-level executive (CEO, CSO, Head of Sustainability) to show top-level commitment.
- Finalize a LOI using the template provided in the chapter.
- Ensure the LOI includes clear terms, responsibilities, and timelines.
- Refer to the rubric below.
Activity 3: Peer Review and Grading of Letters of Intent
Objective: review and provide feedback on letters of intent created by peers, and to grade the letters using a rubric.
Instructions:
- Draft a letter of intent for joining a pact dedicated to the environment.
- Exchange your LOI with a classmate for peer review. Use the provided rubric to evaluate the LOI.
- Give constructive feedback based on the rubric criteria.
- Revise your LOI based on peer feedback.
- Submit the final LOI for grading by the instructor using the same rubric.
Evaluation Criteria:
| Criteria | 5 (Excellent) | 4 (Very Good) | 3 (Good) | 2 (Fair) | 1 (Poor) |
| Content and Clarity | The LOI is clear, comprehensive, and well-structured. | The LOI is clear and comprehensive with minor structural issues. | The LOI is generally clear but has some areas that need improvement. | The LOI lacks clarity and structure in several areas. | The LOI is unclear and poorly structured. |
| Responsibilities and Timelines | Responsibilities and timelines are clearly outlined and realistic. | Responsibilities and timelines are mostly clear and realistic. | Responsibilities and timelines are somewhat clear but need more detail. | Responsibilities and timelines are unclear or unrealistic. | Responsibilities and timelines are missing or entirely unclear. |
| Confidentiality and Due Diligence | Confidentiality and due diligence are thoroughly addressed. | Confidentiality and due diligence are adequately addressed. | Confidentiality and due diligence are mentioned but lack detail. | Confidentiality and due diligence are insufficiently addressed. | Confidentiality and due diligence are not addressed. |
| Overall Effectiveness | The LOI effectively conveys the preliminary commitment and purpose. | The LOI generally conveys the preliminary commitment and purpose with minor issues. | The LOI conveys the preliminary commitment but lacks some clarity in purpose. | The LOI does not effectively convey the preliminary commitment and purpose. | The LOI fails to convey the preliminary commitment and purpose. |
Overall Comments:
Total Score: __ / 20
Instructor’s Name:
Date:
Appendix: Example Letter of Intent Generated by AI
Alex Green
654 Michigan Ave
Green City, GC 67890
September 1, 2026
Ms. Samantha Davis
Exhibition In Charge
Soto’s Galleria Mall
456 Market Street
Green City, GC 67890
Dear Ms. Davis,
My name is Alex Green, and I am the owner of EcoWear, an eco-friendly apparel shop that has been successfully operating online for the past year. I am writing to express my interest in renting a 3-square meter display area at Soto’s Galleria Mall to establish a physical presence and reach more millennial customers who are increasingly conscious about sustainability.
EcoWear is committed to offering high-quality, sustainable fashion options that resonate with millennial shoppers. We seek a minimal display space of 3 square meters equipped with a power outlet for lighting purposes to showcase our innovative and eco-friendly apparel. EcoWear will ensure that the display area is maintained to the highest standards and aligns with the mall’s aesthetic and sustainability goals. We will provide sample shop designs to ensure the display area complements the overall ambiance of Soto’s Galleria Mall.
We propose to begin the rental agreement by October 1, 2024, allowing ample time for setup and marketing in preparation for the holiday shopping season. Any proprietary information exchanged during our discussions will be treated with the utmost confidentiality. Due diligence will be conducted to ensure that all operational and logistical aspects are thoroughly addressed before finalizing the agreement.
We believe that EcoWear’s presence at Soto’s Galleria Mall will attract a significant number of environmentally conscious millennial shoppers, benefiting both our businesses. I am keen to discuss this potential collaboration further and explore how we can align our efforts for mutual success. Please feel free to contact me at (555) 987-6543 or via email at alex.green@ecowear.com to schedule a meeting. I look forward to the opportunity to work with you and make a positive impact on our community and the environment.
Sincerely,
Alex Green
Owner
EcoWear
alex.green@ecowear.com
(555) 987-6543