Letter of Intent

Letter of Intent.webp

Key Highlights

  • A document that sketches out the basic terms and intentions between two or more parties who plan to make a formal deal later.

  • Think of it as a roadmap for negotiations, often used in big business moves like mergers, partnerships, or real estate purchases.

What is Letter of Intent (LOI)?

A document that sketches out the basic terms and intentions between two or more parties who plan to make a formal deal later. Think of it as a roadmap for negotiations, often used in big business moves like mergers, partnerships, or real estate purchases.

What It Does?

  • Shows everyone’s serious about working toward a deal.

  • Lays out key points like price, timelines, and conditions before writing a full contract.

  • Helps spot issues early, keeps talks on track, and sets expectations.

  • Used for things like business collaborations, buying property, or supplier agreements.

Is It Legally Binding?

  • Mostly, it’s just a plan, not a contract you’re locked into.

  • Some parts, like keeping secrets or not negotiating with others, can be binding if clearly stated.

  • It often includes a disclaimer to avoid legal mix-ups.