Legal · Document

LOI — Letter of Intent

A document expressing the intention of one party to enter into a transaction with another, often subject to due diligence and definitive documentation.

In practice

Similar in function to an MoU. Common in M&A — the buyer's LOI sets out offer price, structure, exclusivity period and key conditions. Generally non-binding except as to specific clauses (confidentiality, exclusivity, deposit forfeiture).

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