A non-binding document outlining the preliminary terms of an agreement between parties.
A letter of intent (LOI) is a document that describes the preliminary understanding between two or more parties who intend to enter into a contract or transaction. While generally non-binding, it signifies a serious commitment and often outlines the key terms, conditions, and timeline for a proposed deal. LOIs are commonly used in mergers and acquisitions, real estate transactions, and other complex negotiations to ensure alignment before investing further resources.