Letter of Intent

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.