letter of intent (LOI)
Definition
Interim agreement that summarizes the main points of a proposed deal, or confirms that a certain course of action is going to be taken. Normally, it does not constitute a definitive contract but signifies a genuine interest in reaching the final agreement subject to due diligence, additional information, or fulfillment of certain conditions. The language used in writing a letter of intent is of vital importance, and determines whether it is only an expression of intent or an enforceable undertaking. Also called 'memorandum of understanding' or 'precontract'.
Mentioned in these definitions
Popular 'Agreements & Contracts' Terms
letter of intent (LOI) in the news
This content can be found on the following page:
http://www.businessdictionary.com/definition/letter-of-intent-LOI.html







