A letter of intent or LOI is a document outlining an agreement between two or more parties before the agreement is finalized.
The purposes of an LOI may be:
- to clarify the key points of a complex transaction for the convenience of the parties.
- to declare officially that the parties are currently negotiating, as in a merger or joint venture proposal.
- to provide safeguards in case a deal collapses during negotiation.
Apr 23, 2009