Letter of Intent (LOI)

The Letter of Intent (LOI) is a legal document that outlines the agreement between two or more parties before an agreement is finalized. LOIs are not entirely binding, though they may contain provisions that are binding such as a non-disclosure agreement or “no-shop” provision.

LOIs are used to:

  • clarify key points of a transaction for all parties involved
  • officially declare the parties are negotiating
  • provide safeguards in case the deal collapses
  • verify issues of payment for someone else (e.g. credit card payments)

Please log in to rate this.
0 people found this helpful.

Category: Terminology
Tags: ,

← Letter of Intent (LOI)